INCOME TAX ACT, 1961

Section 80-IA

Deduction under section 80-IA - Exclusion of profits/income derived from wind energy generated and distributed through TNEB in computation of taxable total income - -

Issue arose for consideration as to whether Tribunal was correct in law in rejecting the claim for deduction under section 80-IA on the profits/income derived from wind energy generated and distributed through TNEB in the computation of taxable total income. Held: Tribunal in order discussed the assessee's appeal following the decision in case of ACIT vs. Goldmine Shares and Finance Pvt. Ltd. [(2008) 113 ITD 209(Ahd.) : 2008 TaxPub(DT) 1976 (Ahd-Trib)]. It cannot be disputed that decision in case of Goldmine Shares and Finance Pvt. Ltd. was no longer good law in the light of the decision of this Court in case of Velayudhaswamy Spinning Mills (P) LTD. vs. ACIT [(2012) 340 ITR 477 (Mad) : 2010 TaxPub(DT) 1648 (Mad-HC)] which was confirmed by Supreme Court [(2016) 76 taxmann.com 176 (SC) : 2016 TaxPub(DT) 4736 (SC)]. Therefore, substantial questions of law were answered in favour of assessee.

Followed:Velayudhaswamy Spinning Mills P. Ltd. v. ACIT (2012) 340 ITR 477 (Madras) : 2010 TaxPub(DT) 1648 (Mad-HC) ACIT v. Goldmine Shares And Finance (P.) Limited (2008) 113 ITD 209(Ahd.) : 2008 TaxPub(DT) 1976 (Ahd-Trib) ACIT v. Velayudhaswamy Spinning Mills Pvt. Ltd. (2016) 76 taxmann.com 176 (SC) : 2016 TaxPub(DT) 4736 (SC)

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2004-05

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