KAILASH WINDFARMS,TIRUPUR vs. INCOME TAX OFFICER WARD 1 (1), TIRUPUR

This appeal of the assessee is directed against the order of the Commissioner of Income-tax (Appeals)-3, Coimbatore, dated 28.11.2017 for the assessment year 2014-15.

Shri S.Sridhar, the ld. Counsel for the assessee submitted that the only issue arises for consideration is disallowance of claim of assessee u/s.80-IA of the Act. According to the ld.A.R, the assessee claimed deduction of `26,31,820/- u/s.80(IA) of the Act. According to ld. Counsel for the assessee, the assessee purchased the windmill as a going concern. The ld. Assessing Officer disallowed the claim of assessee on the ground that the windmill undertaking was formed by transfer of machinery, which was earlier used by other company.

On the contrary, Mr.B.Sagadevan, ld. Departmental Representative submitted that for the purpose of claiming deduction u/s.80-IA of the Act, the assessee is to fulfill the conditions provided u/s.80-IA(3) of the Act. The ld.D.R submitted that the first condition is that the machinery shall not be transferred from other unit or plant. In other words, the machinery shall not be used by another undertaking.

We have considered the rival submissions on either side and perused the relevant material available on record. The only dispute between the assessee and the Revenue, is that the machinery, namely windmill, was earlier used by other company. The assessee claims that the wind mill was purchased by the assessee as a going concern and does not form new undertaking. This fact is not disputed by the Revenue. In other words, the purchase of the wind mill undertaking as a going concern by the assessee is not disputed by the Revenue.

In the result, the appeal of the assessee is allowed.