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Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI [CAMP: COIMBATORE]
Before: SHRI N.R.S. GANESAN & SHRI ABRAHAM P. GEORGE
आदेश /O R D E R
PER BENCH:
This appeal filed by the Revenue is directed against the order of the ld. Commissioner of Income Tax (Appeals)-3, Coimbatore granting the claim for deduction u/s.80IA of the Income Tax Act, 1961 (in short 'the Act').
Ld. Commissioner of Income Tax (Appeals) had taken a view that unabsorbed depreciation of earlier years prior to the initial year of preferring a claim under deduction u/s.80IA of the Act was not to be notionally carried forward and set off before granting such deduction.
The ld. Commissioner of Income Tax (Appeals) had followed the judgment of Hon’ble Jurisdictional High Court in the case of M/s. Sri Valayuthasamy Spinning Mills Ltd vs. ACIT 340 ITR 477. The contention of the Revenue before us is that the assessee had claimed deduction u/s 80IA(4) of the Act without setting off of the depreciation of the said units for the earlier years. We find that the issue raised in this appeal is squarely covered by the judgment of the Jurisdictional High Court in the case of Velayudhaswamy Spinning Mills P. Ltd (supra). Once earlier losses had been set off against other income, there is no question of notional adjustment of such losses against the profits of a given year as per the above judgment, while working out deduction claimed u/s 80IA of the Act. Since the CIT(Appeals) had followed the judgment of the Madras High Court, we do not find any reason to interfere with the order of the CIT(Appeals).
In the result, the appeal filed by the Revenue is dismissed.
Order pronounced in the open court on 19th January, 2017 at Coimbatore.