TMI Blog2018 (4) TMI 1627X X X X Extracts X X X X X X X X Extracts X X X X ..... for the Revenue in this regard, especially where in assessment year 2010-11 which was the preceding year to the instant assessment year, the claim of deduction has been allowed in the hands of assessee. It may also be pointed out herein itself that the assessee was running civil construction activity from which it was showing profits from year to year and the losses arising from windmill in the earlier years have already been set off against the said income and the balance income had been assessed in the hands of assessee. It is not case of Revenue that after adjustment of losses in the respective years the assessee had shown any losses. There is no merit in the order of Assessing Officer in holding that deemed losses have to be adjust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inst order of CIT(A) in allowing deduction under section 80IA(4)(iv) of the Act. 4. The grievance of the Revenue is that the quantum of deduction is to be computed of the eligible business as its only source of income after adjusting brought forward unabsorbed depreciation against current year s income. 5. Briefly, in the facts of the case, the assessee for the year under consideration had furnished return of income declaring total income of ₹ 9,48,96,605/- after claiming the deduction under section 80IA(4)(iv)(a) of the Act at ₹ 43,56,397/-. The assessee thereafter filed revised return of income declaring total income of ₹ 12,83,90,386/- after claiming deduction under Chapter VI i.e. under section 80IA of the Act at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellate order considered the said issue. The CIT(A) noted that the assessee had installed windmills in assessment years 2006-07 and 2007-08. The depreciation / loss from windmill was set off against profit of construction activity for the first four years i.e. upto 2009-10. There were no unabsorbed depreciation or losses from assessment year 2010-11. When operation of windmill activity resulted in profit of ₹ 74,26,459/- in assessment year 2010-11, the assessee claimed the deduction under section 80IA(4)(iv)(a) of the Act for the time. The year under appeal was the second year of claim of said deduction. The CIT(A) considered the disallowance made by applying the provisions of section 80IA(5) of the Act and setting off of current ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd. in Income Tax Appeal No.707 of 2014, judgment dated 14.06.2017. Distinguishing feature which was stressed by the learned Departmental Representative for the Revenue was that it was not clear whether losses of earlier years have been absorbed and no losses were carried forward and the same needs verification at the end of Assessing Officer. He placed reliance on the ratio laid down by Mumbai Bench of Tribunal in Pidilite Industries Ltd. Vs. DCIT (2011) 12 taxmann.com 96 (Mum). 9. The learned Authorized Representative for the assessee pointed out that the issue raised in the present appeal stands covered by the order of Tribunal in assessee s own case in assessment year 2010-11, where similar issue was considered and allowed in favour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had not allowed the claim of deduction on account of windmill activity. However, the CIT(A) and the Tribunal thereafter, allowed the claim of deduction. 11. The issue which is raised in the present appeal is the aforesaid claim of deduction under section 80IA(4)(iv)(a) of the Act in respect of windmill business. The Tribunal in assessee s own case (supra) in assessment year 2010-11 had already allowed the claim of assessee. The case of Revenue is that the losses of earlier years if have not been absorbed, then the same have to be adjusted against the undertaking before allowing deduction under section 80IA(4)(iv)(a) of the Act. The CIT(A) in the present case has given a finding that there were no brought forward losses in the hands of a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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