The Tax Publishers2020 TaxPub(DT) 5037 (Mad-HC)

INCOME TAX ACT, 1961

Section 80-IA

Assessee would be entitled to benefit under section 80-IA on power charges realized by it from its sister companies or group companies though situated in the same premises for electricity energy produced by it.

Deduction under section 80-IA - Allowability - Power charges realized from sister companies or group companies situated in same premises -

Issue under consideration was as to whether benefit of deduction under section 80-IA to new Industrial Undertaking would be available to assessee-company to the extent of power charges realized by it from the group company situated within the same premises where the assessee was manufacturing or producing electricity energy. Held: Assessee would be entitled to benefit under section 80-IA on power charges realized by it from its sister companies or group companies though situated in the same premises for electricity energy produced by it.

REFERRED : Tamilnadu Petro-Products Ltd. v. Asstt. CIT (2011) 13 taxmann.com 139 (Mad) : 2011 TaxPub(DT) 0601 (Mad-HC)

FAVOUR : In assessee's favour

A.Y. : 2006-07



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