2019 (7) TMI 1373

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.... the assessment year 2006-07. 2 The Revenue has proposed the following substantial questions of law for the consideration of this Court: "[a]Whether on the facts and in circumstances of the case, the learned ITAT has erred in law and on facts in allowing the assessee's for deduction u/s. 80IA of the Income Tax Act, 1961 in respect of its captive power plaint by considering the rate of power purchase at Rs. 5.44/per unit adopted by the Assessee (i.e. the rate at which G.E.B. supplied power to its consumers), instead of the rate adopted by the assessing officer at Rs. 2.11/per unit (i.e. the rate at which power generating companies supplied its power to Gujarat Urja Vikas Nigam Ltd. / G.E.B.)? [b] Whether on the facts and in circu....

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.... Supreme Court in the case of M/s. Alembic Ltd. (Tax Appeal No.553 & 554 of 2017. It appears that Special Leave Petitions filed by the revenue are pending before the Supreme Court questioning the correctness of the view taken by this Court in the aforesaid two judgments. So far as the Gujarat Alkalies and Chemicals Ltd, (supra) is concerned, it takes the view as under: 3. In both the tax appeals though slightly differently worded, the questions concerning the same assessee are identical and concern the issue of deduction under section 80IA of the Income Tax Act granted to the assessee by the Tribunal on captive power generation plant. The second question is with respect to recognising such claim on the basis of purchase price of power fr....

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....and relying upon the decisions of other Tribunals. The Tribunal was of the opinion that the market value of the electricity supplied by the CPP Unit to the general unit would be the same being charged by GEB from the consumers. 5. Counsel for the Revenue contended that the component of 8 paise per unit was the electricity duty which GEB was not authorized to retain but had to pass on to the Government. In essence, GEB was only collecting 8 paise per unit as electricity duty for and on behalf of the Government. He submitted that the market value of the electricity should be reckoned on Rs. 5.32 ps. Per unit as was done by the Revenue authority. 6. Under subSection(8) of Section 80IA of the Act, if it is found that where any goods or se....