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10.1. The three major issues involved in TCA No.695 of 2009 are with respect to (i)transfer of right by the assessee to another company; (ii)no offset credit; and (iii)electricity charges paid to Wescare as deduction. At the first instance, we are inclined to go into the findings of the authorities below in this regard.

10.2. As regards the first issue, according to the respondent / assessee, the benefit of Miliev grant given by the Dutch Government was enjoyed by DLWL and the respondent / assessee received consideration of only Rs.2 crores i.e., Rs.2.5 lakhs per wind turbine in respect of 80 WTGs for transferring its right to DLWL under EPC contract for installation of 80 WTGs delivered by LW. Whereas, the Assessing Officer brought to tax the https://www.mhc.tn.gov.in/judis  T.C.A.Nos.695 of 2009 & 1100 to 1103 of 2010 value of the entire benefit of Rs.58,85,41,252/- and treated the sale by the respondent/ assessee to DLWL and the sale of the wind mills to the finance companies as sham transactions, on the premise that the wind mills were standing in the name of the assessee in the books of TNEB, the finance companies never became the owners of the wind mills and these companies claimed 100 per cent depreciation; and also on the basis of the letter dated 30.06.1997 from the company secretary of the assessee requesting Sanjay Jayaraman in Hong Kong to send a letter directly to LW backdating it as 27.03.1997. However, the appellate authorities did not accept the same and accordingly, deleted the addition made by the assessing officer, on the ground that the grant was given by the Dutch Government as a matter of policy and it had nexus with the equipment and not with the buyer and hence, it was not possible for the purchaser to transfer the grant and the same was directly disbursed to the manufacturer. It was also pointed out by the appellate authorities that the revenue failed to produce any cogent material to prove that the assessee received over and above the disclosed consideration of Rs.2 crores; and there was no incriminating document made available against the assessee. The Appellate Authorities further noted https://www.mhc.tn.gov.in/judis  T.C.A.Nos.695 of 2009 & 1100 to 1103 of 2010 that as per the agreements entered into the parties, the finance companies were allowed to operate the wind mills on lease and the payment of lease rentals was assured by Wescare and the assessee was to pay operational lease rental calculated as the electricity consumed x TNEB rates – 25 paise per unit. We do not find any good reason to disagree with the reasonings so recorded by the appellate authorities.