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Saturday, 01 August 2015 12:16

Deduction u/s 80-IA Allowed to Assessee - Madras High Court

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The assessee is entitles for the deductions u/s 80IA once the losses and other deduction had been set off and is not subject to reassessment for the purpose of computing current years’s income. In the decision reported in (2012) 340 ITR 477 (Velayudhaswamy Spinning Mills V. Asst. CIT), there appears to be no distinction on facts.


Assessee is in the business of wind mills

Claimed deductions u/s 80-IA

AO denied the deduction

High Court of Madras heavily relied upon (2012) 340 ITR 477 (Velayudhaswamy Spinning Mills V. Asst. CIT) decided by Honb. Madras High Court on 11th March, 2010

Issue being identical in both cases the high court took the similar view and allowed deductions to the assessee.


The facts in the present case are also identical to the above- said decision of this Court that all the business undertakings are wind mills and they have claimed the benefit of deduction under Section 80IA of the Income Tax Act for the assessment years in question and for the subsequent years as well. Having exercised their option and their losses have been set off already against other income of the business enterprise, the assessee in this appeal falls within the parameters of Section 80IA of the Income Tax Act. In the decision reported in (2012) 340 ITR 477 (Velayudhaswamy Spinning Mills V. Asst. CIT), there appears to be no distinction on facts.

Again in a batch of cases in T.C.(A)Nos.408 of 2012, by order dated 12.1.2015, this Court, following the decision reported in (2012) 340 ITR 477 (Velayudhaswamy Spinning Mills V. Asst. CIT) held in favour of the assessee and against the Revenue.

We, therefore, taking note of the decision rendered by this Court in the case of Velayudhasamy Spinning Mills (supra) and in a batch of cases in T.C.(A)Nos.408 of 2012, are inclined to dismiss the above Tax Case (Appeal), thereby confirm the order passed by the Tribunal.

In view of the above, the questions of law raised in this appeal are answered against the Revenue and in favour of the assessee.

Cases Referred to

Velayudhaswamy Spinning Mills vs. Asst. CIT (2012) 340 ITR 477
Liberty India vs. CIT (2009) 317 ITR 218 (SC)
CIT vs. Mewar Oil and General Mills Ltd. (2004) 271 ITR 311 (Raj)

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Read 21355 times Last modified on Saturday, 13 February 2016 17:03
Anil B.

A practicing Chartered Accountant Anil B. acquired CA, CS and LL.B degrees with over 12 years of rich and diverse management experience across Banking & Financial Services, Insurance and the Logistics industry spanning various markets and geographies globally.

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