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| The Tax Publishers2020 TaxPub(DT) 1451 (Guj-HC) : (2020) 422 ITR 0449 : (2020) 275 TAXMAN 0078 INCOME TAX ACT, 1961
Section 80-IA(4)
The word 'power' used in section 80-IA(4) has not been defined under the Act and has to be understood in common parlance as 'energy'. 'Energy' can be in any form being mechanical, electricity, wind or thermal. In such circumstances, 'steam' produced by assessee could be termed as power and would qualify for benefits available under section 80A(4).
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Deduction under section 80-IA(4) - Allowability - Income from sale of steam/vapour - AO not considering steam as power
Assessee claimed deduction under section 80-IA(4) as regards income from sale of power and the sake of vapour. AO took the view that 'Vapour' did not fall within the meaning of 'power'as 'steam' was only an intermediate raw material for manufacturing process.Held: The word 'power' used in section 80-IA(4) has not been defined under the Act and has to be understood in common parlance as 'energy'. 'Energy' can be in any form being mechanical, electricity, wind or thermal. In such circumstances, 'steam' produced by assessee could be termed as power and would qualify for benefits available under section 80A(4).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2011-12
INCOME TAX ACT, 1961
Section 80-IA(4)
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