INCOME TAX ACT, 1961

Section 80-IA

Deduction under section 80-IA - Eligibility for deduction under section 80-IA - Infrastructure development activity for windmill -

Assessee-company was engaged in infrastructure development activity for Windmill. For this purpose, it took land on lease on its own and sub-leased them to various parties after dividing them into various small plots. The other activities of assessee were laying transmission line/network of various windmills to the sub-stations State Electricity Board. Assessee claimed deduction under section 80-IA. AO noticed that income credited to the Profit & Loss Account was from lease rental, service charges, interest, short-term capital gain, etc. He observed, though assessee had stated that it was in business of sub-leasing of plots obtained on lease to various companies for setting up of windmills, however, assessee itself was not setting up windmills. Therefore, conditions of section 80-IA(4)(vi)(b) were not satisfied. AO disallowed assessee's claim.Held: It was evident that AO while disallowing assessee's claim of deduction under section 80-IA had primarily relied upon the assessment order passed on identical issue in the preceding assessment years. However, CIT(A) allowed assessee's claim following the view taken while deciding assessee's appeals in earlier assessment years. While deciding revenue's appeal on identical issue for earlier assessment years in ITA No. 4518/Mum./2011, ITA No. 547/Mum./2012, and ITA No. 1306/Mum./2012, dt. 31-10-2018, Tribunal had upheld the decision of CIT(A) allowing assessee's claim of deduction under section 80-IA.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2012-13

INCOME TAX ACT, 1961

Section 37(1)

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