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2019 (5) TMI 940 - AT - Income TaxDisallowance of deduction u/s 80IA(4)(iv) - treatment to notionally brought forward business losses and depreciation of earlier years and notionally set off against the income of the windmill - case of the assessee was selected for scrutiny assessment - HELD THAT:- As decided in assessee's own case [2018 (6) TMI 1608 - ITAT AHMEDABAD] depreciation already claimed by the assessee and set off against the regular source of income cannot be notionally brought forward and set off against the income of windmill for the current year after selection of initial year for claiming deduction u/s. 80IA(iv). The assessee has been given choice of 10 consecutive years out of 15 years for claiming deduction u/s.80IA(iv). Once assessee has selected initial year then unabsorbed depreciation and losses of that year and subsequent years could be carried forward for set off against the income of those years before computing the deduction admissible u/s.80IA(iv). AO has brought forward the depreciation of A.Y. 2007-08, 2008- 09 etc, which has already been set off against the regular income. He brought forward such depreciation on notional basis, which is contrary to the proposition laid down VELAYUDHASWAMY SPINNING MILLS P. LTD. & SUDAN SPINNING MILLS (P.) LTD. & MOHAN BREWERIES AND DISTILLERIES LTD. OTHERS [2010 (3) TMI 860 - MADRAS HIGH COURT]. FAA has rightly appreciated the controversy and rightly granted the deduction to the assessee. No error in the order of the CIT(A) hence, this ground of appeal is rejected in both the years. - Decided against revenue.
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