AI Drafter 
TaxTMI 
TaxTMI 
2022 (11) TMI 1416
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....urrent unit for captive consumption was correctly adopted by applying the rate at which the State Electricity Board supply electricity, with regard to deduction u/s 80IA, without considering that the assessee had shown the sale price of power in its books at cost price only"? 2. "On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in adopting the market price of power supplied to captive unit at the rate of which the State Electricity Board supplies electricity, with regard to deduction u/s 80IA, without excluding the government duties and taxes as such levy is involved in transfer of power from one unit to another"? 3. The appellant prays that the order of be the CIT(Appeals) on the above gr....
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.... deduction u/s 80-IA of the Act in respect of following four power plants namely: i) Century Cement Thermal Power Plant (15 MW) Rs 10,47,38,366 (ii) Century Cement Thermal Power Plant II (10MW) Rx6,56,19,618 (iii) Maihar Cement Thermal Power Plant (15.7 MW) Rs.14,58,24,883 (iv) Maihar Cement Thermal Power Plant II (15.7 MW) Rs 10,20,52,172 Rs.41.82.35.030 12. The Assessing Officer was of the view that the assessee was selling the unit on the basis of Government Electricity Selling Authority and the Government Electricity Selling Authority was purchasing the electricity from the other agencies and distributing agencies was charging after considering the market value of 25% of the cost of purchases....
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....ransferred by eligible business to other business carried on by assessee. It is also argued that explanation at the foot of Sec. 80IA(8) also elucidate on the concept of market value in the following such as for the purpose of the Sub-section, market value in relation to any goods & service means the price that such goods & service would ordinarily fetch in the open market. It is also argued that the case of the assessee has duly been covered by the assessee's own case for the A.Y. 2006-07 wherein Hon'ble ITAT in ITA. No.115/M/2011 dated 14.06.2017 has held that the market value of Electricity sold/supplied as provided u/s 80IA (8) of the Act can be adopted and the rate at which the assessee purchases electricity from the concerned ....
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....tances of the case of assessee has duly been covered by the assessee's own case (supra). Therefore, the said circumstances, we set aside the finding of the CIT(A) on this issue and allowed the claim of the assessee u/s80IA of the Act. Accordingly, this issue is being decided in favour of the assessee against the revenue. 5. We note that the Ld.CIT(A) has decided the issue by passing the impugned order as under on the same issue:- Disallowance under 80IA For its own consumption of electricity, the assessee has set up two captive power plants in the name and style of Century Cement Thermal Power plant which supplies power to Century Cement Plant, where as Maihar Cement Power Thermal Plant supplies power generated to M....
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....d to the Cement units is the rate at which assessee purchases electricity from the respective SEB's. The ITAT held that under given circumstances, the market value of electricity sold supplied as provided under 80IA(6) can be adopted at the rate at which the assessee purchases electricity from concerned SEB's during the relevant period. When there is no other method to find out the market value. according to ITAT it is rational and reasonable to adopt the rate at which SEB's supplies electricity to similar types of consumers as the market value. The ITAT relied on the decisions of- CIT VS Godavari Power and Ispat (2004) 42 taxmann.com 551 According to the ITAT the computation of deduction u/s 80IA in respect of....