Case Law Details
Tata Sponge Iron Limited Vs DCIT (ITAT Cuttack)
The fundamental requirement of showing the income from “eligible” unit in the gross total income is mandatory which was not complied by the assessee in order to claim deduction u/s.80IA of the amount equal to the income generated by the eligible unit.
Facts-
The appellant is company engaged in the business of manufacturing and sale of sponge iron. It has also installed a power plant to produce LCD basing on the hot gas emitted from the furnace used in the Sponge Iron Smelter plant.
During the course of scrutiny assessment AO found that the assessee has not maintained separate books of account in respect of Power plant and the expenses incurred for running the power plant and income received from such power plant was deducted from the net profit of consolidated P & L account amounting to ₹34,25,63,787. Accordingly gross total income was arrived at ₹24,13,99,264 after taking various adjustments and withdrawing the receipt and expenditure in respect of power plant. The assessee was found to have again deducted a sum of ₹7,59,27,674 as deduction u/s.80IA towards 100% deduction of income from power plant. This amount of ₹7,59,27,674 was not included in the total income returned by the assessee.
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