2026 (8) TMI 1023

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....and the only issue in ITA No. 250/Jodh/2024 relate to disallowance of deduction claimed under Section 80IA of the Income Tax Act, 1961 (in short 'the Act') on profit derived from sale of electricity generated by the windmill unit of the assessee and sold for captive use. 3. Briefly, the facts more or less common in both the appeals are, the assessee is a resident corporate entity engaged in manufacturing, processing, and trading of granite slabs/tiles, marble, slabs/tiles and reality business. In addition to three units, namely, granite division, granite slab division, and marble division, the assessee also has a fourth unit i.e. windmill unit for generation of power. The power generated by the windmill unit is mostly utilized on captive....

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....of Section 80IA of the Act, as the appropriate rate would be the rate at which the generating company sells electricity to the Electricity Board. Since the assessee had sold the surplus electricity to the Electricity Board at the rate of Rs. 2.0625 per unit, the Assessing Officer applied that rate and worked out the profit for the purpose of Section 80IA of the Act, which according to the Assessing Officer, can be considered for the purpose of deduction. 6. We have considered rival submissions and perused the materials on record. So far as the issue, the profit derived from sale of electric consumption, whether would qualify for deduction under Section 80IA of the Act, is no more res integra by virtue of the decision of the Hon'ble S....

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....Thus, in view of the aforesaid, we direct the Assessing Officer to allow assessee's claim of deduction under section 80IA of the Act. 7. The only other issue arising in ITA No. 249/Jodh/2024 relates to the disallowance of Rs. 15,219,032/- for non-deduction of tax at source in terms with section 194C of the Act. 8. Briefly, the facts relating to this issue are, in case of assessment proceedings, the Assessing Officer noticed that the assessee had made payments to various persons without deducting tax at source under section 194C of the Act, though such payments were debited to the profit and loss account as expenses. Noticing this fact, the Assessing Officer called upon the assessee to furnish various details relating to the parties to....