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2016 (3) TMI 59 - AT - Income TaxEligibility of deduction under section 80IA(5) - profits earned from generation and sale of electricity without setting-off the losses of other units engaged in the same business - Held that:- Every unit constitutes a separate undertaking engaged in the eligible business, losses of one unit need not be set-off against the profits of the another units although engaged in the same business for the purposes of deduction under section 80IA of the Act. Presence of positive ‘Gross Total Income’ after setting of brought forward losses etc. and profits from an eligible undertaking is sufficient to entitle the deduction to the assessee. We, accordingly, find that the CIT(A) has rightly reversed the action of the Assessing Officer in accordance with law. As such, we decline to interfere with the order of the CIT(A). - Decided in favour of assessee Depreciation claim - assessee company has claimed escalated depreciation @ 80% on the entire cost of windmill including civil work, expenses of erection and commissioning work, etc. - Held that:- The capital expenditure incidental to the windmill has to be tested on the touchstone of the functional test and the assessee will be entitled to higher rate of depreciation on such incidental expenditure, if it has no other use except for power generation done by the windmill. Accordingly, we hold that the Revenue is misdirected itself in law in making the impugned disallowance of depreciation. - Decided in favour of assessee Disallowance of foreign tour and travelling expenses - Held that:- As find that the CIT(A) has confirmed the estimation of disallowance on the ground that the reply is general and business purpose has not been substantiated in respect of certain visits noted above. In the absence of specific details, we decline to interfere with the orders of the CIT(A). - Decided against assessee
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