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2015 (8) TMI 124 - ITAT CHENNAI

2015 (8) TMI 124 - ITAT CHENNAI - TMI - Disallowance of deduction claimed under section 80IA - CIT(A) allowed claim - Held that:- The business undertaking of the assessee is wind mill power generation/hosiery goods, etc., and it has claimed the benefit of deduction under Section 80IA of the Income Tax Act for the assessment year in question and for the subsequent years as well. Having exercised its option and its losses have been set off already against other income of the business enterprise, t .....

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peals filed by the Revenue pertaining to the same assessee are directed against the separate orders of the ld. Commissioner of Income Tax (Appeals)-1, Chennai, both dated 28.01.2015 relevant to the assessment years 2010-11 and 2011-12. 2. Brief facts of the case are that the assessee is engaged in the business of manufacture of steel castings. The assessee had filed return of income on 28.08.2010 by declaring total income of ₹ 21,01,36,650/-. Subsequently, it has filed a revised return on .....

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ning Mills P. Ltd. v. ACIT 231 CTR (Mad) 368): [2012] 340 ITR 477 . 3. Against the order of the Assessing Officer, the assessee carried the matter in appeal before the ld. CIT(Appeals). The ld. CIT(Appeals), by following the decision in the case of Velayudhasamy Spinning Mills Ltd. v. ACIT 231 CTR 368 (Mad) , allowed the claim of the assessee. 4. Aggrieved, the Revenue is in appeal before the Tribunal. 5. The ld. DR relied on the order passed by the Assessing Officer. 6. On the other hand, the l .....

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already been decided by the jurisdictional High Court in the case of Velayudhasamy Spinning Mills P. Ltd., (supra). The Hon'ble High Court has held as under:- "13. Sec.80-IA reads as follows: [(1) Where the gross total income of an assessee includes any profits and gains derived by an undertaking or an enterprise from any business referred to in sub-section (4) (such business being hereinafter referred to as the eligible business), there shall, in accordance with and subject to the prov .....

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ture facility or starts providing telecommunication service or develops an industrial park [or develops a special economic zone referred to in clause (iii) of subsection (4)] or generates power or commences transmission or distribution of power [or undertakes substantial renovation and modernisation of the existing transmission or distribution lines ): (4) This section applies to- (i) any enterprise carrying on the business [of (i) developing or (ii) operating and maintaining or (iii) developing .....

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maintaining or (iii) developing, operating and maintaining a new infrastructure facility;] (c) it has started or starts operating and maintaining the infrastructure facility on or after the 1st day of April, 1995: 5) Notwithstanding anything contained in any other provision of this Act, the profits and gains of an eligible business to which the provisions of subsection (1) apply shall, for the purposes of determining the quantum of deduction under that sub-section for the assessment year immedia .....

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y an undertaking for an enterprise from any business referred to in sub-s(4) i.e. referred to as the eligible business, there shall, in accordance with and subject to the provisions of the section, be allowed, in computing the total income of the assessee, a deduction of an amount equal to 100 percent of the profits and gains derived from such business for ten consecutive Assessment Years. Deduction is given to eligible business and the same is defined in sub-s (4). Subs-s(2) provides option to .....

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efined under the provisions. It is to noted that initial assessment year' employed in sub-s(5) is different from the words beginning from the year' referred to in sub-s(2) Important factors are to be noted in sub-s(5) and they are as under:- "(1) It starts with non obstante clause which means it overrides all the provisions of the Act and other provisions are to be ignored. (2) It is for the purpose of determining the quantum of deduction; (3) For the Assessment Year immediately suc .....

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