DCIT, CHENNAI V. M/s. Neyveli Lignite Corporation Limited, Neyveli

ITA 1887/CHNY/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 0954 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-01-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2004-2005
• Appeal Filed On: 25-10-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: T N BETGIRI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI BEFORE SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER AND SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER I.T.A. NO. 1887/MDS/2012 (ASSESSMENT YEAR : 2004-05) THE DEPUTY COMMISSIONER OF INCOME TAX, LARGE TAXPAYER UNIT, CHENNAI - 600 101. (APPELLANT) V. M/S NEYVELI LIGNITE CORPORATION LIMITED, (F&AB) INCOME-TAX SECTION, CORPORATE OFFICE, NEYVELI-607 801. PAN : AAACN 1121 C (RESPONDENT) APPELLANT BY : SHRI T.N. BETGIRI, JCIT RESPONDENT BY : SHRI SAROJ KUMAR PARIDA,ADVOC ATE DATE OF HEARING : 22.01.2013 DATE OF PRONOUNCEMENT : 22.01.2013 O R D E R PER ABRAHAM P. GEORGE, ACCOUNTANT MEMBER : IN THIS APPEAL FILED BY THE REVENUE, ITS GRIEVANCE IS THAT THE CIT(APPEALS) ALLOWED DEDUCTION UNDER SECTION 80-IA OF INCOME-TAX ACT, 1961 (IN SHORT 'THE ACT') ON PROFITS SHOWN BY THE ASSESSEE ARISING OUT OF INTER UNIT TRANSFER OF POWER. AS PER REVENU E, DEPARTMENT HAD NOT ACCEPTED THE JUDGMENT OF HON'BLE JURISDICTIONAL HIGH COURT IN THE I.T.A. NO. 1887/MDS/12 2 CASE OF CIT V. THIAGARAJAR MILLS LTD. [T.C.(APPEALS ) NOS. 68 TO 70 OF 2010]. 2. WE HAVE HEARD THE RIVAL CONTENTIONS. ASSESSEE HA D LIGNITE MINES AND THE OUTPUT OF THE LIGNITE MINES WERE CAPT IVELY CONSUMED BY THERMAL POWER STATIONS. THE POWER GENERATED BY THE THERMAL STATIONS WAS USED IN THE MINES FOR EXCAVATION OF LIGNITE. T HE A.O. WAS OF THE OPINION THAT THE ASSESSEE WAS NOT ENTITLED TO CLAIM DEDUCTION UNDER SECTION 80-IA OF THE ACT IN RESPECT OF NOTIONAL PRO FITS ON ACCOUNT OF POWER GENERATED FROM ITS OWN CAPTIVE POWER PLANT AN D UTILIZED BY ITSELF. HOWEVER, THE CIT(APPEALS), RELYING ON THE DECISION OF HON'BLE JURISDICTIONAL HIGH COURT IN THE CASE OF THIAGARAJA R MILLS LTD. (SUPRA) AS WELL AS THAT OF TAMILNADU PETRO PRODUCTS LTD. V. ACIT (338 ITR 643) HELD THAT ASSESSEE WAS ENTITLED FOR SUCH DEDUC TION. LEARNED D.R. WAS UNABLE TO SHOW ANY DECISION OF HON'BLE APE X COURT, WHICH WAS AGAINST THE VIEW TAKEN BY THE HON'BLE JURISDICT IONAL HIGH COURT. IN THE CASE OF TAMILNADU PETRO PRODUCTS LTD. (SUPRA ), HON'BLE JURISDICTIONAL HIGH COURT HELD THAT INCOME DERIVED BY THE ASSESSEE FROM GENERATION OF ELECTRICITY WHICH WAS CAPTIVELY CONSUMED, WAS ELIGIBLE FOR DEDUCTION UNDER SECTION 80-IA OF THE A CT. WE ARE, I.T.A. NO. 1887/MDS/12 3 THEREFORE, OF THE OPINION THAT CIT(APPEALS) WAS JUS TIFIED IN GIVING RELIEF TO THE ASSESSEE. NO INTERFERENCE IS CALLED FOR. 3. IN THE RESULT, APPEAL FILED BY THE REVENUE IS DI SMISSED. THE ORDER WAS PRONOUNCED IN THE COURT ON TUESDAY, T HE 22 ND OF JANUARY, 2013, AT CHENNAI. SD/- SD/- (CHALLA NAGENDRA PRASAD) (ABRAHAM P. GEORGE) JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI, DATED THE 22 ND JANUARY, 2013. KRI. COPY TO: (1) APPELLANT (2) RESPONDENT (3) CIT(A), LTU, CHENNAI (4) CIT, LTU, CHENNAI (5) D.R. (6) GUARD FILE