TMI Blog2015 (8) TMI 124X X X X Extracts X X X X X X X X Extracts X X X X ..... n Velayudhaswamy Spinning Mills case (2010 (3) TMI 860 - Madras High Court). - Decided in favour of the assessee - ITA Nos. 1282 and 1283/Mds/2015 - - - Dated:- 17-7-2015 - A Mohan Alankamony, AM And V Durga Rao, JM,JJ. For the Appellant : Shri P Radhakrishnan, JCIT For the Respondent : Shri R M Narayanan, CA ORDER Both the appeals 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 28.08.20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her the assessee is eligible for claiming deduction under section 80IA of the Act or not. We find that this issue has 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 provisions of this section, be allowed, in computing the total income of the assessee, a deduction of an amount equal to hundred per ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 immediately succeeding the initial assessment year or any subsequent assessment year, be computed as if such eligible business were the only source of income of the assessee during the previous year relevant to the initial assessment year and to every subsequent assessment year up to and including the assessment year for which the determination is to be made. Fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovisions are to be ignored. (2) It is for the purpose of determining the quantum of deduction; (3) For the Assessment Year immediately succeeding the initial Assessment Year; (4) It is a deeming provision; (5) Fiction created that the eligible business is the only source of income; and (6) During the previous year relevant to the initial assessment year and every subsequent assessment year. From reading the above, it is clear that the eligible business were the only source of income during the previous year relevant to initial assessment year and every subsequent assessment years. When the assessee exercises the option, the only losses of the years beginning from initial assessment year alone are to be brought forward and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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