Sec 80IA benefits available to power generation units. But If Power generation plant is captively used i.e., other units wholly used power than whether deduction available to such unit. for example
Unit A generate 1,00,000 units & transfer it to unit B at market Price @ 3/ uint = 3,00,000.00
Less Cost of power generation cost = 1,00,000.00
Profit of power generation unit = 2,00,000.00
Unit B positon
Sales = 10,00,000
Manufacturing Cost = 5,00,000
pOWER cOST (TRANSFER FROM A) = 3,00,000
pROFIT OF B = 2,00,000
uNIT a+b
SALE = 10,00,000
MANUFAC COST= 5,00,000
POWER COST = 1,00,000
PROFIT = 4,00,000
NOW MY QUSTION IS THAT WHETHER RS 2,00,000 CAN BE CLAIMED AS DEDUCTION U/S 80IA4(IV) ? LET ASSUME ALL OTHER CONDITION OF SEC 80IA SATISFY.
CAclubindia
