TMI Blog2015 (1) TMI 1369X X X X Extracts X X X X X X X X Extracts X X X X ..... llowed the decision rendered by Hon’ble Madras High Court in the case of Velayudhaswamy Spinning Mills (P) Ltd Vs. ACIT [2010 (3) TMI 860 - Madras High Court] we do not find any reason to interfere with his order on this issue. - Decided against revenue - I .T.A. No.6266/Mum/2012 - - - Dated:- 16-1-2015 - HON BLE S/SHRI H.L. KARWA, PRESIDENT AND B.R.BASKARAN (AM) Appellant by : Shri Neil Philips Respondent by Shri Nikhil Tiwari O R D E R Per B.R.BASKARAN, Accountant Member: The revenue has filed this appeal challenging the order dated 16.07.2012 passed by Ld CIT(A)-29, Mumbai and it relates to the assessment year 2009-10. The only issue urged by the revenue relates to the deduction allowed by Ld CIT(A) u/s 80I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rofits of eligible business shall be computed as if such eligible business were the only source of income of the assessee during the previous year relevant to the initial assessment year and to every subsequent assessment year up to and including the assessment year for which the determination is made. The AO took the view that the losses incurred by the assessee from generation of power in AY 2006-07 and 2007-08 is required to be adjusted against the profit earned during the year under consideration in terms of sec. 80IA(5) of the Act. Accordingly, he adjusted the said losses and thus denied the deduction claimed by the assessee u/s 80IA(5) of the Act, since no profit was remaining after such adjustment. 5. The Ld CIT(A), however, follo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w of this, we are of the opinion that there is no question of setting off notionally carried forward unabsorbed depreciation or loss against the profits of the units and assessee is entitled to claim deduction under s. 80-IA on current assessment year on the current year profit. Accordingly, we allow the claim of the assessee. By following the above said decision, the Ld CIT(A) held that the provisions of sec. 80IA(5) treating the undertaking as a separate source of income cannot be applied to a year prior to the year in which the assessee opted to claim relief u/s 80IA for the first time. Accordingly the Ld CIT(A) held that the losses of earlier years cannot be notionally brought forward to be set off against current year s income, sin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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