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2015 (6) TMI 210 - AT - Income TaxDeduction u/s 80IA - income from windmill business - whether the unabsorbed depreciation accumulated in earlier years prior to the initial year needs to be adjusted while computing the amount eligible for deduction u/s 80IA? - eligible business being the only source of income of the assessee - Held that:- This issue has been considered by the Hon'ble Madras High Court in the case of Velayudhaswamy Spinning Mills (P) Ltd. Vs. ACIT [2010 (3) TMI 860 - Madras High Court] wherein after considering the decision of CIT vs. Goldmine Shares and Finance (P) Ltd. [2008 (4) TMI 405 - ITAT AHMEDABAD ] and referring the provisions of section 80IA of the Act, held that if the loss in the earlier years to the initial assessment year has already been absorbed, then it cannot be notionally brought forward and set off against the profits of the eligible business. This view has been reiterated again by the Hon'ble Karnataka High Court in the case of CIT & DCIT vs. Anil H. Lad [2014 (3) TMI 808 - KARNATAKA HIGH COURT]. Thus choosing of initial assessment year for the purpose of claiming deduction for the period of 10 years out of 15 years is with the assessee and secondly, before claiming deduction u/s 80IA of the Act, the loss on depreciation claimed by the assessee in respect of eligible business is to be set off against the income of the assessee from other source, that is, other business income and earlier loss/depreciation of the Wind Mill cannot be notionally set off against the profit of eligible business for the computation of deduction. Accordingly, the order of the ld. CIT(A) is confirmed - Decided against revenue.
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