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2017 (12) TMI 1257 - AT - Income TaxDeduction u/s 80IA - allowance of claim undertaking wise or on a consolidated basis - Held that:- The assessee had shown profits from its windmill at Satara and had worked out the deduction under section 80IA(4) of the Act in respect of said windmill at ₹ 2.42 crores. The assessee was entitled to claim the said deduction undertaking wise. The losses suffered from the other windmill established by the assessee in Karnataka and Gujarat were not to be set off against the profit of Satara windmill, on the proposition that each windmill was a separate undertaking. Such view was upheld by the Pune Bench of the Tribunal in the case of M/s. J-Sons Foundry Pvt. Ltd. (2013 (1) TMI 778 - ITAT PUNE) and in the case of M/s. D.J. Malpani Vs. ACIT (2015 (12) TMI 896 - ITAT PUNE). Coming to the adjustment of losses of other windmill, which have been set off against the profits of another business carried on by the assessee i.e. manufacture of Zarda. The assessee pointed out that after adjusting the said losses return of income was offered at ₹ 19.69 crores. In view thereof, the proposition laid down by the Hon’ble Gujarat High Court in the case of Sintex Industries Ltd. Vs. Assistant Commissioner of Income Tax (OSD) (2013 (7) TMI 979 - GUJARAT HIGH COURT) is at variance where the income after adjustment of losses was Nil and hence, the said proposition is not to be applied to the facts of the present case. Accordingly, we hold that the assessee is entitled to claim the deduction under section 80IA(4) of the Act undertaking wise and the loss having been adjusted against business income, cannot curtail the deduction claimed under section 80IA(4) of the Act. Accordingly, we dismiss the grounds of appeal raised by the Revenue.
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