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2017 (12) TMI 294 - AT - Income TaxDeduction u/s 80IA - year of claim as 'initial assessment year' - Held that:- CIT(A) after appreciating the facts had relied upon the judgment passed by Hon’ble Madras High Court in the case of Velayudhaswamy Spg. Mills (P.) Ltd. v. Asstt. CIT [2010 (3) TMI 860 - Madras High Court] wherein it has been clearly held that where the depreciation and loss of earlier assessment years have already been set off against other business income of those assessment years, there is no need for notionally carrying forward and setting off the same depreciation and loss in computing the quantum of deduction available under section 80-IA. The Court has held further that the year of commencement alone need not be the 'initial year'. The year of claim also can be considered as 'initial assessment year'. The said judgment has also been followed by different benches of the Hon'ble ITAT. Apart from above, Ld. AR has also drawn our attention to paper book page no. 4 which relates to Circular nO. 1/2016 issued by CBDT dated 15.02.16 wherein it has been clearly held that the term ‘initial assessment year’ would mean the first year opted for by the assessee for claiming deduction u/s 80IA. We have also . . noticed that in the above circular, a direction has been given to the AO to allow deduction u/s 80IA and pending litigation on allowability of deduction u/s 80-IA shall also not be pursued to the extent it relates to interpreting ‘initial assessment year’ as mentioned in sub section (5) of that section. - Decided against revenue.
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