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2019 (1) TMI 403 - ITAT PUNEDenial of deduction u/s.80IA - initial assessment year - eligible for deductionu/s.80IA(4)(iv) on his business profit without setting off his earlier years’ business losses/unabsorbed depreciation which have already been set off against income from other business/sources - Held that:- Referring to case of Poonawal Estate Stud. & Agro Farm Pvt. Ltd. [2010 (9) TMI 1080 - ITAT PUNE] as been held that the provisions of section 80IA(5) are applicable only from the initial assessment year i.e. the assessment year in which deduction u/s.80IA(4) was first claimed by the assessee after exercising its option as per the provisions of section 80IA(2) of the Act. CIT(Appeal) had also referred to the CBDT Circular No.1/2016 dated 15.02.2016 which provides that the term ‘initial assessment year’ would mean the first year opted for by the assessee for claiming deduction u/s.80IA. As per section 80IA(5) of the Act, it is evident that the matter regarding initial assessment year has now been clearly settled in favor of the assessee. As per both, the ITAT Co-ordinate Bench decisions,as well as the CBDT Circular, the assessee has an option to choose the initial assessment year for the purposes of deduction u/s.80IA. In the present case,the appellant has chosen the initial assessment year to be assessment year 2009-10 and the present assessment year is the fourth year of the claim under section 80IA.- decided in favour of assessee. Addition on account of generation of scrap out of repairs and maintenance expenses - assessee has not maintained separate details of such expenses - Held that:- Since in the realm of welfare legislation specifically, the Income Tax Act, 1961,the quasi-judicial Authority i.e. Assessing Officer has to pass an order after proper reasons and verification. From the above, it is absolutely clear that there is neither verification nor any evidence brought on record to justify the said additions which therefore, can be safely termed as ad-hoc additions made on guess work and surmises which cannot be sustained. Accordingly,we find no infirmity in the findings of the Ld. CIT(Appeal) in deleting the addition - decided against revenue
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