2024 (1) TMI 1252

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....and in the circumstances of the case, the Income Tax Appellate Tribunal ["ITAT"] was justified in law in deleting the addition of Rs.4,82,99,004/- made on account of disallowance of deduction under Section 80IA(8) of the Income Tax Act,1961? (b) Whether on the facts and in the circumstances of the case, the ITAT was justified in law in directing to deduct the cost of reject coal and iron ore fine dust for determining the disallowance to be made under section 80IB of the Income Tax Act, 1961? 2. In so far as the issues raised in question (a) are concerned, our attention was drawn to the following conclusions as rendered by the Supreme Court in Commissioner of Income Tax v. M/s. Jindal Steel & Power Ltd. [2023 SCC OnLine SC 1632] ....

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.... the Tribunal had rightly computed the market value of electricity supplied by the captive power plants of the assessee to its industrial units after comparing it with the rate of power available in the open market i.e., the price charged by the State Electricity Board while supplying electricity to the industrial consumers. Therefore, the High Court was fully justified in deciding the appeal against the revenue. xxxx xxxx xxxx 78. Before parting with this issue, we may mention that reliance placed by Mr. Rupesh Kumar, learned counsel for the revenue on the definition of the expression "market value" as defined in the explanation below sub-section (6) of Section 80 A of the Act is totally misplaced inasmuch as sub-section ....

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....onsidered by a coordinate Bench of this Tribunal, and while considering the case of the assessee in the light of the decision of the Hon'ble Apex Court in the case of CIT vs. Punjab Stainless Steel Industries vide Civil appeal No. 3288 and 4491 of 2009 and 4898 of 2010, accepted the alternative plea of the assessee and remanded the matter with a direction to the Ld. AO to deduct the sale proceeds of those items from the cost of raw materials used in the manufacturing process and then accordingly determine the profit of the undertaking to allow the deduction under section 80 IB as per the revised profits so computed. 8. In the light of the observations made by a coordinate Bench of this Tribunal in the above case, we have consid....