DCIT, DEHRADUN vs. M/S JAI PRAKASH POWER VENTURE LTD., H.P.

ITA 3929/DEL/2012Status: DisposedITAT Dehradun23 May 2025AY 2008-09Bench: SHRI SATBEER SINGH GODARA (Judicial Member), SHRI M. BALAGANESH (Accountant Member)20 pages
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What did the Tribunal hold?

The Tribunal held that interest income on FDRs, IPO funds, LOC, and margin money did not qualify for Section 80IA deduction as it was not 'derived' from the eligible business. However, income from the sale of carbon credits was held to be a capital receipt not taxable under normal provisions or for MAT computation for the relevant assessment years.

What were the facts?

The assessee, Jaiprakash Power Ventures Ltd., appealed against the CIT(A)'s order concerning the computation of deduction under Section 80IA. The primary dispute involved whether interest receipts on FDRs were eligible for deduction and if interest expenditure could be netted against interest income.

What were the issues?

Whether interest income from FDRs and other sources is 'derived' from eligible business for Section 80IA deduction, and whether income from sale of carbon credits is taxable.

Which sections of the Income-tax Act were involved?

Section 80IA,Section 115JB,Section 57

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Cases cited in this judgment(10)Show list

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Income Tax Appellate Tribunal, DELHI BENCH: ‘DB’ NEW DELHI

Before: SHRI SATBEER SINGH GODARA & SHRI M. BALAGANESH

For Appellant: CA Sh. Sanjiv Choudhary, CA
Hearing: 20.03.2025Pronounced: 23.05.2025

PER SATBEER SINGH GODARA, JM The instant batch of four cases pertains to the single assessee herein M/s. Jaiprakash Power Ventures Ltd. It has filed its first and foremost appeal ITA No. 3064/Del/2013 for AY 2007-08 against the Commissioner of Income Tax (Appeals)-1 [in short “CIT(A)”], Dehradun’s order dated 28.02.2013 passed in cas

The order continues below.

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