Case Law Details
Tata Power Co. Ltd. Vs ACIT (ITAT Mumbai)
ITAT Mumbai held that once assessee’s claim of deduction u/s. 80IA of the Income Tax Act on Supa Wind Power Project 17 MW Unit has been accepted in the initial Assessment Year, the same cannot be denied in the subsequent Assessment Years.
Facts- The assessee is engaged in generation, transmission and distribution of electricity. During the period relevant to assessment year under appeal, the assessee had entered into international transaction of provision of loan to its Associated Enterprise(AE), Tata Power Mauritius and provision of corporate guarantee to its other A.E.
AO referred international transactions to TPO. The TPO vide order dated 24/10/2011 made adjustment of Rs. 154,46,89,113/- in respect of aforesaid loan transaction and corporate guarantee. AO further made additions/disallowances under various provisions of the Act. Aggrieved by the draft assessment order, the assessee filed objections before the Dispute Resolution Panel (DRP). The DRP vide directions dated 28/09/2012 granted part relief to the assessee. AO passed the final impugned assessment order, accordingly. The assessee in appeal has raised multiple grounds assailing the assessment order and the directions of DRP confirming additions.
Conclusion- Held that the Revenue has not disputed the fact that the manner of determination of suo-motu disallowance u/s. 14A of the Act by the assessee is in accordance with the method accepted by Revenue in the past. Merely for the reason that Rule 8D was introduced from the impugned assessment year it cannot be said that there is any defect in the manner of computation of disallowance u/s.14A by the assessee.
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