TMI Blog2017 (4) TMI 523X X X X Extracts X X X X X X X X Extracts X X X X ..... ten consecutive years. Substituted sub-section (2) of Section 80IA provides that an option is given to the assessee for claiming any ten consecutive assessment years out of fifteen years beginning from the year in which the undertaking or the enterprise develops and begins to operate. The fifteen years is the outer limit within which the assessee can choose the period of claiming the deduction. The "initial assessment year" in the case of the assessee in A.Y. 2009-10, when the claim of deduction u/s. 80IA was made for the first time, and the current A.Y. 2010-11 is the second year of the assessee’s claim u/s.80IA. Therefore, we are of the considered opinion the assessee is eligible for deduction u/s. 80IA as claimed, therefore, the Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... return declaring income of ₹ 1,08,31,788/- on 13.10.2010 which was processed u/s 143(1) of the I.T. Act, 1961 and later selected for scrutiny. Accordingly, the Assessing Officer issued statutory notices u/s 143(2)/142(1) of the Act which were complied by the assessee. Assessee is a proprietor of M/s Palms Exports and M/s Palms Enercon Inc. which was engaged in the business of manufacturing of garments and energy production. Besides business income, assessee had also shown Income from other sources. It was noted by the Assessing Officer that, assessee had claimed deduction u/s 80-IA of the Act to the tune of ₹ 32,55,010/- (claiming energy generation be the 4th year of operation and the first year of deduction). Assessee's cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order u/s. 143(3) of the I.T. Act, 1961. Aggrieved with the assessment order, assessee filed the appeal before the Ld. CIT(A) who vide his impugned order dated 18.2.2014 deleted the additions by allowing the appeal of the assessee. 3. Aggrieved with the impugned order of the Ld. CIT(A), the Revenue is in appeal before the Tribunal. 4. Ld. DR relied upon the order of the AO and reiterated the contentions raised in the grounds of appeal. 5. This Appeal came up before the Bench many times and adjourned from time to time. On 12.1.2017 none present from the assessee and case was adjourned for 03.4.2017 and Notice was issued to assessee through Ld. DR and again on 3.4.2017 none present on behalf of the assessee and case was adjourned for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t to the provisions of this section, be allowed in computing the total income, a deduction of an amount equal to 100% of the profits and gains derived from such business for ten consecutive years. Substituted subsection (2) of Section 80IA provides that an option is given to the assessee for claiming any ten consecutive assessment years out of fifteen years beginning from the year in which the undertaking or the enterprise develops and begins to operate. The fifteen years is the outer limit within which the assessee can choose the period of claiming the deduction. Sub-section (5) is a non-obstante clause which deals with the quantum of deduction (or an eligible business .... Thus, the fiction created is that the eligible business is the onl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant in A.Y. 2009-10, when the claim of deduction u/s. 80IA was made for the first time, and the current A.Y. 2010-11 is the second year of the appellant s claim u/s.80IA. Therefore, in my considered opinion and in the light of the judgment cited above, the appellant is eligible for deduction u/s. 80IA as claimed. The addition of ₹ 32,55,010/- is hereby deleted. 7. On going through the aforesaid findings of the Ld. CIT(A), with regard to addition in dispute are concerned, we note that in the case of Satbhav Engineering Ltd. (supra), ITAT, Ahmedabad has relied upon the order of the Hon ble Madras High Court in the case of Velayudhaswami Spinning Mills (Supra), while holding that we find that Section 80IA of the Act which has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itial assessment year , as culled out in sub-section (2) of Section 80IA from which it chooses its ten years of deduction out of fifteen years, then only the losses of the years starting from the initial assessment year alone are to be brought forward as stipulated in Section 80IA(5). The loss prior to the initial assessment year which has already been set-off cannot be brought forward and adjusted into the period of ten years from the initial assessment year as contemplated or chosen by the assessee ... This is the true import of Section 80IA(5). In the light of the above judgment, if we consider the facts of the instant case, we find that there is no dispute as to eligibility of deduction u/s. 80IA(1), but, the only dispute is whet ..... X X X X Extracts X X X X X X X X Extracts X X X X
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