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Income Tax Appellate Tribunal, “ C” BENCH, CHENNAI
Before: SHRI B.R. BASKARAN & SHRI VIKAS AWASTHY
आदेश /O R D E R
PER B.R. BASKARAN, ACCOUNTANT MEMBER:
The appeal filed by the Revenue is directed against the
order dated 08.07.2014, passed by Ld. Commissioner of Income
Tax (Appeals)-I, Coimbatore, relating to assessment year 2010-11.
The Revenue is aggrieved by the decision of ld. CIT(Appeals) in
allowing deduction under Section 80-IA of Income-tax Act, 1961 (in
short 'the Act') claimed by the assessee.
2 I.T.A. No. 2495/Mds/2014
The assessee had claimed deduction under Section 80-IA of
the Act in respect of income generated from windmills. The
Assessing Officer, by following the provisions of Section 80-IA(5) of
the Act, took the view that the profits and gains of windmills
business should be computed as if it were the only source of
income of the assessee right from commencement of business.
Accordingly, the A.O. held that the business losses, depreciation
and investment allowances of earlier years should be taken into
account in determining the quantum of deduction admissible under
Section 80-IA, even though there may have been set off against the
profits of taxpayer from other sources. Though the assessee placed
reliance on the decision of Hon'ble jurisdictional High Court in the
case of Velayudhaswamy Spinning Mills (P) Ltd. v. ACIT (234 CTR
368) to content that restrictions placed under Section 80-IA(5)
should be applicable after initial year of claiming of deduction, yet,
the Assessing Officer did not accept the same on the reason that
the Department has preferred SLP before the Hon'ble Supreme
Court against the decision rendered by the Hon'ble Madras High
Court. Accordingly, he disallowed the claim raised by the assessee
under Section 80-IA(5) of the Act.
3 I.T.A. No. 2495/Mds/2014 3. In the appellate proceeding, the Ld. CIT(Appeals) allowed the claim of the assessee by following the decision of Hon'ble Madras High Court in the case of Velayudhaswamy Spinning Mills referred supra.
Aggrieved, the Revenue has filed this appeal before us.
We have heard the parties and perused the records. Since the Ld. CIT(Appeals) has followed the binding decision of Hon'ble Madras High Court in allowing the claim of deduction under Section 80-IA to the assessee, we do not find any reason to interfere with his order on this issue
In the result, the appeal filed by the Revenue is dismissed.
Order pronounced on the 19th day of January, 2015 at Chennai.
Sd/- sd/- (�वकास अव�थी) (बी.आर. बा�करन) (Vikas Awasthy) (B.R. Baskaran) �या�यक सद�य/Judicial Member लेखा सद�य/Accountant Member
चे�नई/Chennai, �दनांक/Dated, the 19th January, 2015.
Kri.
4 I.T.A. No. 2495/Mds/2014
आदेश क� ��त�ल�प अ�े�षत/Copy to: 1. अपीलाथ�/Appellant 2. ��यथ�/Respondent 3. आयकर आयु�त (अपील)/CIT(A)-I, Coimbatore 4. आयकर आयु�त/CIT-I, Coimbatore 5. �वभागीय ��त�न�ध/DR 6. गाड� फाईल/GF.