TTHE COMMISSIIONER OF INCOME TAX, vs. SREE RUBBER LATEX INDUSTRIES,

J U D G M E N T K.Vinod Chandran, J. The issue arising in the above appeal is as to whether an infrastructure development Company is entitled to deduction under Section 80-IA of the Income Tax Act, 1961 without setting off loss/unabsorbed depreciation pertaining to the infrastructure (specifically, wind mill), which was set off in earlier years against other business income of the assessee. The initial assessment year as referred to in sub-Section (5) of Section 80-IA was held to be the year of claim of deduction under Section 80-IA and not the year of commencement of eligible business as held by the High Court of Madras in (2012) 340 ITR 477 (Mad) [Velayudhaswamy Spinning Mills P. Ltd. v. Assistant Commissioner of Income Tax]. The Income Tax Appellate Tribunal in the instant case also relied on the cited decision to allow the appeal filed by the assessee. The above view of the Madras High Court was approved by the Honourable Supreme Court by the dismissal of the Special Leave Petition, which order is reported in (2016) 243 Taxmann 438 (SC) [Principal Commissioner of Income Tax v. Cheran Spinning Mills (P.)

-3- Ltd.]. On a reading of the decision in Velayudhaswamy Spinning Mills P. Ltd. (supra), we find ourselves in respectable agreement with the same.

In view of the above and also considering the fact that the Honourable Supreme Court has dismissed the SLP filed against the judgment of the Madras High Court, we answer the questions of law in favour of the assessee and against the Revenue and dismiss the appeal. No costs. K.VINOD CHANDRAN JUDGE ASHOK MENON JUDGE -4-