TMI Blog2011 (1) TMI 1529X X X X Extracts X X X X X X X X Extracts X X X X ..... ve identical facts and similar issue, therefore being disposed of by this single order for the sake of convenience. 3. The assessee claimed deduction of ₹ 27,88,859/- from windmill division and ₹ 12,85,175/- from turbine division respectively under section 80IA of the Act for the assessment year 2004-05 and the Assessing Officer completed reopened assessment while withdrawing deduction under section 80IA of the entire amount of ₹ 40,74,374/- as claimed by the assessee and for the assessment year 2005- 06, the assessee claimed deduction of ₹ 22,10,638/- and ₹ 1,13,55,009/- from wind mill division and turbine division respectively which came to be restricted by the Assessing Officer in reopened assessment to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the assessee can choose ten consecutive years out of fifteen years beginning from the year in which the assessee undertaking or enterprise develops and begins to operate. The selection of ten consecutive years block period is within the span of fifteen years from the year in which the assessee begins the operation of enterprise develops. Therefore, sub-section (2) provides a liberty to the assessee to choose the block of ten consecutive years as tax holiday out of the span of fifteen years. The sub-section (5) of section 80IA of the Income Tax Act, 1961 starts with non-obstante clause having an over-riding effect over the other provisions of the Income Tax Act, 1961. Therefore, the sub-section (5) prescribes the deeming fiction and laid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee s case are similar to that of M/s. Sri Velayudhasamy Spinning Mills (P) Ltd. Respectfully following the decision of Hon ble Madras High Court and ITAT mentioned supra, I hold that for the tax holiday period of ten consecutive years chosen by the assessee, the eligible business is treated as the sole and separate source of income and unabsorbed depreciation prior to the block period of ten years chosen as tax holiday cannot be notionally carried forward and set off against the income from the assessment years falling in the block period of ten years tax holiday. 7. In respect of both windmill division and turbine division, assessee is entitled for deduction u/s 80IA of the Act during A.Y. 2004- 05. Hence, I direct the Assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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