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2017 (9) TMI 650 - ITAT MUMBAIDeduction u/s 80IA(4)(iv) - initial assessment year - Business of manufacture of transformer oils, lubricating oils and other petroleum products besides generation of electricity from wind mills - Profits from 6 Wind Mill Units not correctly worked out as per AO, losses in the years prior to the ‘initial year’ had been otherwise set-off against the other incomes of the assessee in those respective years - Interpretation of Sec. 80IA(5) - AO assessed loss in 4 units out of six - Held that:- as per the assessee, it is only the losses starting from the initial year, i.e. the first year of claim of deduction and thereafter, which are required to be taken into consideration for arriving at profits eligible for deduction. Factually speaking, there is no dispute that so far as losses considered by the Assessing Officer are concerned, they have otherwise been absorbed against other incomes of the assessee in the respective years. CBDT clarified ‘initial assessment year’ used in Sec. 80IA(5) of the Act is to be understood to mean the first year opted by the assessee for claiming deduction u/s 80IA of the Act. Considered in this light also, we find no error on the part of the CIT(A) in allowing the claim of the assessee. - Revenue appeal is dismissed Nature and taxability of Income earned on account of transfer of Carbon Credit - Revenue Income or capital receipts - Held That:- the receipt on account of Carbon Credit was a capital receipt not chargeable to tax.Therefore Tribunal affirm the order of CIT (A) - Appeal of revenue is dismissed. Disallowance interest expenditure u/s 14A -Held That:- Own funds comprising of Share Capital and Reserves & Surplus were much more than the investments in the exempt instruments and, therefore, CIT(A) made no mistake in deleting the disallowance of interest expenditure made u/s 14A of the Act. - Decided against Revenue
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