Asstt. CIT v. Empilon Fabrics (P) Ltd.
INCOME TAX ACT, 1961
--Deduction under section 80-IA--Initial yearYear of commencement or year of claim----The term 'initial assessment year' would mean the first year opted for by the assessee for claiming deduction under section 80-IA, therefore, AO was directed to allow deduction under section 80-IA where assessee had selected year of claim as initial year. --Assessee company had set up a wind mill and had claimed deduction under section 80-IA. AO was of the view that since the windmill project was started in assessment year 2006-07 and the assessee has claimed deduction under section 80-IA(4)(iv)(a) for the first time in assessment year 2010-11. AO disallowed the deduction under section 80-IA by applying the provisions of 80-IA(v) by calculating the profit on windmill business starting from the year in which said wind mill was set up and not from the initial assessment year in which the deduction had been claimed for the first time.Held: Year of commencement alone need not be the 'initial year'. The year of claim also can be considered as 'initial assessment year'. The term 'initial assessment year' would mean the first year opted for by the assessee for claiming deduction under section 80-IA. Therefore, AO was directed to allow deduction under section 80-IA.
Income Tax Act, 1961 Section 80-IA
FAVOUR : In assessee's favour.
A.Y. : 2010-11
IN THE ITAT, MUMBAI BENCH
SHAMIM YAHYA, A.M. & SANDEEP GOSAIN, J.M.
ACIT v. Empilon Fabrics (P) Ltd.
ITA No. 3981/Mum/2015
1 November, 2017 A.Y.
Velayudhaswamy Spinning Mills P. Ltd. & Sudan Spinning Mills (P.) Ltd. & Mohan Breweries and Distilleries Ltd. Others v.
Assistant Commissioner (2012) 340 ITR 477--Madras High Court
Shevie Exports v. Jt. Commissioner in (ITA No.
321/Mum./2012, dt. 10-4-2013)
Pidilite Industries Ltd. v. Deputy Commissioner, Circle
3 (2), Mumbai in (No. 3355 (MUM.) OF 2009, dt. 10-6-2011)
Assistant Commissioner, Circle--4, Ahmedabad. v.
Goldmine Shares And Finance (P.) Limited. in (ITA Nos 4044, 4045, 4046, 4047,
4048, 4049 /Ahd/ 2003(assessment years 1997-98 to 2002-03) and I. T. A. No 1057 /Ahd/ 2004(assessment year 1999-2000), dt. 30-4-2008)
Appellant by: T. A. Khan
Respondent by: R.S. Sharma
Sandeep Gosain, J.M.
The present Appeal filed by the revenue is against the
order of Commissioner (Appeals)-16, Mumbai dated 4-3-2015 for assessment year
2010-11 on the grounds mentioned herein below :--
(i) Whether on the facts and in
the circumstances of the case and in law, the learned C/T(A) erred in allowing
deduction us 80/A thereby ignoring the non-obstante provisions of section
801A(5) according to which the assessee is not eligible for deduction since he
has carry forward losses of the eligible business.
(ii) Whether and in the
circumstances of the case, the learned Commissioner (Appeals) erred in ignoring
the judgement of the Honble ITAT Mumbai in the case of Pidilite Industries
Ltd. (ITA No. 33551M12009 dated 10-6-2011) whose ratio-decidendi is totally
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