IN THE ITAT CHENNAI BENCH ‘A’
Sri Matha Spinning Mills (P.) Ltd.
Versus
Deputy Commissioner of Income-tax
IT Appeal No. 1845 (Mds.) of 2011
[ASSESSMENT YEAR 2007-08]
NOVEMBER 14, 2012
ORDER
Vikas Awasthy, Judicial Member
The present appeal has been filed by the assessee impugning the order of the Commissioner of Income-tax (Appeals)-II, Coimbatore dated August 10, 2011.
2. The brief facts of the case are that the assessee is a company engaged in the business of manufacture of yarn and electricity generation. The assessee filed its return of income for the assessment year 2007-08 on October 30, 2007 admitting total income of Rs. 1,70,20,240 under normal computation and Rs. 4,72,52,760 under the provisions of section 115JB. The case of the assessee was selected for scrutiny and notice under section 143(2) was issued to the assessee on September 8, 2008. The Assessing Officer vide assessment order dated December 24, 2009 made certain additions in the income returned by the assessee under the provisions of section 115JB.
3. Aggrieved against the assessment order, the assessee preferred an appeal before the Commissioner of Income-tax (Appeals). The Commissioner of Income-tax (Appeals) vide impugned order partly allowed the appeal of the assessee. However, the Commissioner of Income-tax (Appeals) upheld the findings of the Assessing Officer with regard to market value of power consumed at the rate at which the Tamil Nadu Electricity Board (hereinafter referred to as “TNEB”) purchased from it in respect of the units of the power generated by the undertaking and consumed captively. Aggrieved against this finding of the Commissioner of Income-tax (Appeals), the assessee has come in the second appeal before the Tribunal.
4. The assessee has assailed the order of the Commissioner of Income-tax (Appeals) on the following grounds :
