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2014 (9) TMI 1228 - AT - Income TaxDeduction u/s 80IA - initial assessment year - Whether earlier depreciation which has already been absorbed can be notionally carried forward and set off against the profits available for deduction under sec.80IA? - HELD THAT:- This issue has been considered by the Hon’ble Madras High Court in the case of Sri Velayudhasamy Spinning Mills P. Ltd.[2010 (3) TMI 860 - MADRAS HIGH COURT] where the court has held that such notionally carried forward and set off past losses and depreciation is not permissible under the provisions of sec.80IA. In view of the decision of the Hon’ble High Court, we set aside the orders of the lower authorities on this issue and direct the Assessing Officer to compute the deduction available to the assessee under sec.80IA without any sort of notionally carried forward and set off past depreciation and losses Whether carbon credit receipts are revenue in nature? - HELD THAT: This issue is also now covered by the decision of the Hon’ble Andhra Pradesh High Court in the case of My Home Power Ltd.[2014 (6) TMI 82 - ANDHRA PRADESH HIGH COURT]. As such, this issue is also decided in favour of the assessee. Accordingly, we direct the Assessing Officer to exclude the carbon credits from computing the total income of the assessee. Eligibility of deduction u/s 80IA - HELD THAT:- This issue is covered by the decision of case of Sri Velayudhasamy Spinning Mills P. Ltd.,[2010 (3) TMI 860 - MADRAS HIGH COURT] in favour of the assessee and as such, these appeals are liable to be dismissed.
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