AI Drafter 
TaxTMI 
TaxTMI 
2023 (5) TMI 1002
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....cts in failing to appreciate the findings of the assessing officer and overlooking the finding made during the assessment proceedings 4 Whether the Ld. CIT (A) has failed to appreciate the details/justification given by the AO and therefore addition made and that the AO had established that transactions were not genuine and thus the addition made was correct by giving detailed clarification after through verification of the submission made by the assessee. 3. Apart from that Revenue has also raised additional grounds:- "1. Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in ignoring that the assessee has got its accounts audited only on 19.02.2018 and the audit report in form no 10CCB has been filed by assessee along with its revised return only on 19.02.2018, hence deduction w/s 80IA(4) of the Act is inadmissible to assessee as per the provisions of section 80IA(7) of the IT Act, 2 Whether on the facts and in the circumstances of the case and in law, the Ld CIT(A) has erred in ignoring that as per section 80AC of the IT Act no such deduction shall be allowed to assessee unless assessee furnishes a return o....
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....cts and not from running effluent treatment plant. The relevant part of schedule 15 revenue from operation is reproduced below:- Note 14(a) Details of sales of products Potassium Carbonate Rs. 7,10,03,854/- Caustic Potash Lye Rs. 2,45,10,097/- Total Rs. 9,55,13,951/- Since years assessee is in business of manufacturing above products and get revenue from sale of above products. 23.4. Thus the revenue of assessee is from various persons to whom Potassium Carbonate and Caustic Potash Lye is sold and is not from persons whose waste water is treated by assessee. Therefore the revenue of assessee is not eligible for deduction as it is not generated from eligible infrastructure activities. 23.5. There is no explanation as to how waste water is used to manufacture Potassium Carbonate and Caustic Potash Lye. What are the chemical contain of waste water and how this chemical contains are used to produce potassium carbonate and Caustic Potash Lye. No authentic data is submitted to show what are the chemical components of waste water and what are the chemical components of above referred products. Whether waste water really has that compon....
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....3) In order to control environmental degradation, due to discharge of effluents into nearby rivers by industries, the Pollution Control Boards have prescribed norms for treatment and conveyance of effluents to a safe disposal point. As a result a number of plants have been set up for treatment of effluents and its conveyance system. In this context, a number of representations have been received seeking clarification as to whether the effluent treatment and conveyance system may be treated as an infrastructure facility for the purposes of tax benefit under section 80-IA. (4) Under the treatment of effluents and its conveyance system, the effluents emanating from chemical industries are to be conveyed inside the sea through onshore pipeline and before discharging effluent through pipeline, entire load of effluent is to be treated to marine standards. Therefore, it is a part of water treatment system and would accordingly qualify as an infrastructure facility for the purposes of tax benefit under section 80-IA. However, an enterprise carrying on the business of (i) developing or (ii) operating and maintaining or (iii) developing, operating and maintaining such infrastructure....
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....being fulfilled. 5.4. It is further explained by the appellant that it treats effluent water which is received from various concerns including M/s Vinati Organics. This water contains various chemicals (salts) in the dissolved form viz., Potassium Carbonate, Sodium carbonate, Potassium Hydroxide etc. This polluted water is concentrated in Multi-effect evaporator to remove the water contents. The concentrated stream is then crystallized using cooling water. During crystallization process Potassium Carbonate and Sodium carbonate crystals are formed as mixture. The crystallised slurry is filtered in centriduge. The wet cake is dried in dryer to generate Potassium Carbonate & Sodium carbonate mixture. The mother liquor and wash liquid are then sold as Potash Lye contains Potassium Hydroxide. 5.5 It is further stated that the appellant has obtained consent to set- up/consent to operate from the Maharashtra Pollution Control Board (MPCR) for setting up the ETP/WTP, Powers & by MPCR e governed by Water Prevention & Control of Pollution Act 1974 d (Prevention & Control of Pollution Act 1981, Water (Cess) Act 1977 & other provision under Environmental Protection) Act, 1988....