COMMISSIONER OF INCOME TAX Vs. ORIENT ABRASSIVE LTD

JUDGEMENT

(1.) THESE appeals by the Revenue pertaining to assessments years 2002 -03, 2004 -05, 2005 -06 2006 -07 and 2007 -08 raise an identical question and, therefore, are being disposed of by this common decision. By order dated 23rd November, 2011, the following substantial questions of law were framed for adjudication:

(2.) FOR the sake of convenience, learned counsel for the parties state that ITA No. 991/2010 relating to assessment year 2004 -05, may be treated as the lead case.

(3.) THE respondent -assessee had an Abrasives Grains Division at Porbandar, Gujarat that manufactured fused Aluminium Oxide grains etc. The respondent -assessee had setup a power plant at Porbandar, Gujarat for captive supply to the Aluminium Oxide gains unit. Profit earned from the power plant unit, it was claimed, was eligible for deduction under Section 80IA of the Income Tax Act, 1961 (Act, for short), as an undertaking engaged in generation of electricity. The respondent -assessee had, along with return of income, filed Form No.10CCB as mandated by Rule 18BBB of the Income Tax Rules, 1962 computing deduction under Section 80IA. In the course of the assessment proceedings, respondent -assessee had filed a technical note explaining the features of the power plant established by them to generate electricity.