80 IA deduction Power sector

This query is : Resolved

Arati (Querist)
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03 January 2026 In case of transmission of electricity whether deduction on the basis of ROE can be claimed as no separate books are maintained for asset addition during the year.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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04 January 2026 For the power transmission sector, deduction under Section 80-IA can validly be claimed on ROE-based profits, even if separate books for asset additions during the year are not maintained, provided the eligible business profits are reasonably identifiable, regulator-approved, audited, and consistently followed. The law requires auditability and correctness, not impractical asset-wise bookkeeping.

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