Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (10) TMI 1474 - AT - Income TaxDeduction u/s. 80IA - whether windmill installed at different places constitutes separate undertaking for the purpose of computing the deduction u/s. 80IA(4)(iii) ? - HELD THAT:- As decided in own case [2015 (12) TMI 896 - ITAT PUNE] relied on the decision of Coordinate Bench of the Tribunal in the case of J-Sons Foundry Pvt. Ltd Vs. DCIT [2013 (1) TMI 778 - ITAT PUNE] for A.Yrs. 2007-08 and 2008-09 [2013 (1) TMI 778 - ITAT PUNE] while granting relief to the assessee in appeal for the A.Yrs. 2007-08 to 2010-11. It is now a settled legal proposition that “every unit constitute a separate undertaking engaged in the eligible business and losses from one unit cannot be set off against the profit of another unit engaged in the same business for the purpose of computing the deduction u/s 80IA.” Therefore, we are of the opinion that order of the CIT(A) on this issue is fair and reasonable and it does not call for any interference. Accordingly, ground No. 2 raised by the Revenue is dismissed. ‘Initial assessment year’ - HELD THAT:- he initial assessment year for the assessee for claiming deduction u/s.80IA (4) r.w.s (5) is the issue adjudicated by the Tribunal in favour of the assessee. While granting relief in para 65 of the Tribunal order, the Tribunal relied on the decision of Coordinate Bench of the Tribunal in the case of Poonawala Estate Stud & Agro Farm Pvt. Ltd. [2010 (9) TMI 1080 - ITAT PUNE] and also Velayudhaswamy Spinning Mills Pvt. Ltd [2010 (3) TMI 860 - MADRAS HIGH COURT] . As such, Ld. DR could not bring any contrary decision on the issue under consideration. Thus, the initial assessment year constitutes the assessment year in which the deduction u/s.80IA of the Act is first claimed by the assessee after exercising his option as per the provisions of Section 80IA(2) of the Act. Therefore, we are of the opinion that the relief granted by the CIT(A) on this issue does not require any interference. Accordingly, ground No.3 raised by the Revenue is dismissed. Rate of depreciation applicable to the electricity fittings of the windmill - HELD THAT:- This is a case where the Assessing Officer allowed depreciation at the rate of 10% on electricity fittings used for windmill. In the appeal, the CIT(A) decided the issue in favour of assessee allowing depreciation at the rate of 80%. In doing so, he relied on decision in the case of Poonawala Estate Stud & Agro Farm Pvt. Ltd. [2010 (9) TMI 1080 - ITAT PUNE] . Considering all, CIT(A) granted relief to the assessee for A.Yrs. 2007-08 to 2010-11. In our opinion, decision of CIT(A) is fair and reasonable and same does not require any interference. Ground No.4 raised by the Revenue is accordingly dismissed. Additional depreciation on generation of electricity - HELD THAT:- It is the decided issue that the generation of electricity by windmill amounts to production of article or a thing and therefore, the present assessee is entitled for additional depreciation as per Section 32(1) (ia) of the Act. In view of these findings, we are of the opinion that assessee is entitled to relief on the issue of additional depreciation. To that extent, the order of CIT(A) stands reversed and in favour of the assessee Rate of depreciation applicable to temporary approached road and fencing - AO allowed the depreciation at the rate of 10% only and CIT-A allowed depreciation at the higher rate of 80% as they are used for windmill - HELD THAT:- It is the finding of the Tribunal in assessee’s own case(supra.) that 10% is the depreciation rate applicable to the electrical fittings. Considering the above settled nature of the issue at the level of the Tribunal as informed by assessee, we are of the view that the ground raised by the assessee is to be dismissed.
|