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2017 (12) TMI 1323 - AT - Income TaxDenying deduction u/s 80-IA - ‘initial year’ for the purpose of Section 80-IA - whether loss and depreciation of earlier years in respect of the eligible wind mills had to be notionally brought forward and set off against profits of eligible business while computing deduction u/s 80IA? - Held that:- As in case of CIT Vs. Anil H.Lad [2014 (3) TMI 808 - KARNATAKA HIGH COURT] held that where depreciation and losses of earlier assessment years have already been set off in those years and subsequently deduction u/s 80-IA is claimed by the assessee, there is no need to notionally carry forward the same and set off from the income of the current year. Same view has been taken in other judicial pronouncements. Respectfully following the same, we hold that there was no need to notionally carry forward the earlier year’s losses / depreciation to impugned AY before deduction could be granted to the assessee. Resultantly, the first ground of assessee’s appeal stands allowed. Excluding the interest income and Foreign Exchange Gains for the purpose of computing deduction u/s 80-IA - Held that:- The impugned forex gains earned by the assessee were assessable as Business Income and the same were not eligible for deduction u/s 80-IA. Resultantly, Ground No. 2 of assessee’s appeal stands partly allowed. The Ld. AO is directed to re-compute assessed income of the assessee under normal provisions as well as under Section 115JB, being consequential in nature, in terms of our above order.
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