Captive Power Valuation Must Include Electricity Duty for 80-IA Deduction: Calcutta HC

Graphite India Ltd. Vs CIT (Calcutta High Court) The appeal under Section 260A of the Income Tax Act, 1961 challenged the order of the Income Tax Appellate Tribunal (ITAT) for the assessment year 2001–02 on multiple substantial questions of law relating to deductions, computation of profits, and treatment of incentives. The assessee, engaged in manufacturing graphite electrodes, calcined petroleum coke, and generating power through captive units, claimed deductions under Section 80-IA on profits from power generation by valuing captively consumed electricity at rates charged by the Karnataka...