Section 80IA(8)

Section 80IA(8) — the law in short

What the courts have decided on section 80IA(8), in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.

• CIT v Jindal Steel & Power Ltd Supreme CourtHelps taxpayer
  Our captive power plant supplies electricity to our own factory. The officer values that power at the low rate the Electricity Board pays us for surplus, not the tariff the Board charges us. Which is 'market value' under s.80-IA(8)?
  The tariff the Board charges its industrial consumers. The Supreme Court held that the rate at which a generator sells surplus power to a State Electricity Board is a rate fixed by contract under a statutory monopoly and is not a price fetched in the open market. The tariff at which the Board supplies industrial consumers is the price at which power is actually available to a buyer, and that is the market value for an inter-unit transfer under s.80-IA(8). Here that meant Rs 3.72 per unit, not Rs 2.32.

Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.