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2019 (11) TMI 934 - HC - Income TaxDeduction u/s 80-IA - initial assessment year - Whether Tribunal was right in holding that the decision reported in the case of Velayudhaswamy Spinning Mills [2010 (3) TMI 860 - MADRAS HIGH COURT] is applicable to the facts of the present case and thereby allowing the deduction on windmill income u/s 80IA? - HELD THAT:- Division Bench of this court in Principal Commissioner of Income Tax-3, Coimbatore v. Prabhu Spinning Mills (P) Ltd. [2016 (3) TMI 1309 - MADRAS HIGH COURT] held Once such initial assessment year has been opted for by the assessee, he shall be entitled to claim deduction u/s 80IA for ten consecutive years beginning from the year in respect of which he has exercised such option subject to the fulfillment of conditions prescribed in the section. Hence, the term 'initial assessment year' would mean the first year opted for by the assessee for claiming deduction u/s 801A. However, the total number of years for claiming deduction should not transgress the prescribed slab of fifteen or twenty years, as the case may be and the period of claim should be availed in continuity. The Assessing Officers are, therefore, directed to allow deduction u/s 80IA in accordance with this clarification and after being satisfied that all the prescribed conditions applicable in a particular case are duly satisfied. Pending litigation on allowability of deduction u/s 80 IA shall also not be pursued to the extent it relates to interpreting 'initial assessment year' as mentioned in Sub-Section (5) of that section for which the Standing Counsel/DRs be suitably instructed.
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