DCIT CIRCLE 1, SALEM vs. GTP WIND ENERGY PVT. LTD., SALEM

Mr. Marudha Pandian, JCIT, represented on behalf of the Revenue and Mr. G.Baskar, Adv., represented on behalf of the assessee.

It was submitted by the Ld.DR that the only issue in the Revenue’s appeal was against the action of the Ld.CIT(A) in allowing the assessee’s claim of deduction u/s.80IA of the Act, which had been disallowed by the AO in respect of wind mill. It was a submission that the assessee company had taken the wind mill undertaking as a going concern. The AO had disallowed the assessee’s claim of deduction u/s.80IA on the ground that the transferor company had transferred the machinery, alone, being the wind mill and consequently, the assessee had not complied with the conditions specified in clause-(i) to Sec.80IA(3) of the Act and the assessee had acquired used plant and machinery being the wind mill, which had been used by the transferor company and WDV has come down to nearly ‘zero’.

In reply, the Ld.AR submitted that the issue in this appeal is squarely covered by the decision of the co-ordinate Bench of this Tribunal in the case of Kailash Wind Farms, Tirupur vs. The ITO, in dated 09.08.2018, wherein, the co-ordinate Bench of this Tribunal had held that the assessee’s claim was that the wind mill was purchased by the assessee as a going concern and does not form a new undertaking, consequently, the assessee is entitled for deduction u/s.80IA of the Act in respect of the remaining period. It was a submission that the Ld.CIT(A) had followed the decision of the co-ordinate Bench of this Tribunal in the case of Kailash Wind Farms, Tirupur vs. The ITO. He vehemently supported the order of the Ld.CIT(A).

We have considered the rival submissions.

As it is noticed that the issues in this appeal are squarely covered by the decision of the co-ordinate Bench of this Tribunal in the case of Kailash Wind Farms, Tirupur vs. The ITO and as the Revenue has not been able to point out with any decision contrary to the said decision of the co-ordinate Bench of this Tribunal, referred to supra, and as the Ld.CIT(A) has followed the judicial discipline in following the decision of the co-ordinate Bench of this Tribunal in the case of Kailash Wind Farms, Tirupur vs. The ITO, we do not find any reason to interfere with the order of the Ld.CIT(A).

In the result, the appeal filed by the Revenue is dismissed.