The Tax Publishers2020 TaxPub(DT) 4053 (Pune-Trib)

INCOME TAX ACT, 1961

Section 80-IA

CBDT Circular No. 1/2016, dated 15-2-2016 itself gives preference to assessee to choose a particular year as initial assessment year. In assessee's case, it was only for the first time for assessment year 2010-11 that assessee had chosen to claim deduction under section 80-IA. Therefore, assessment year 2010-11 was the initial assessment year and assessee was entitled to claim deduction for the year under consideration, thought windmill commenced generation of power in assessment year 2007-08.

Deduction under section 80-IA - Initial assessment year - AO sought to replace initial assessment year chosen by assessee -

Assessee claimed deduction under section 80-IA. AO disallowed deduction on the ground that initial assessment year was assessment year 2007-08 which was the year relevant to previous year in which windmill commenced generation of power. Assessee submitted that it had claimed deduction under section 80-IA for the first time in assessment year 2010-11, and not from assessment year 2007-08. Held:CBDT Circular No. 1/2016, dated 15-2-2016 itself gives preference to assessee to choose a particular year as initial assessment year. In assessee's case, it was only for the first time for assessment year 2010-11 that assessee had chosen to claim deduction under section 80-IA. Therefore, assessment year 2010-11 was the initial assessment year and assessee was entitled to claim deduction for the year under consideration.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2012-13



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