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2017 (10) TMI 1643 - ITAT SURATDeduction u/s 80IA(5) - generation of power through windmill - As per AO it is not available as per provisions of section 80IA (5) as the loss of power unit in initial year was to be carry forward and setoff against the current year’s profit of power unit. As there is no profit available from power unit in the current year, after set-off, claim u/s 80IA would be nil - HELD THAT:- The issue is squarely covered in assessee’s own case in the A.Y. 2010- 11 of Tribunal in which it was held as under: “In our considered opinion, the lower authorities have grossly erred in setting off notional losses with the profit of the eligible unit in the current year. The Hon’ble High Court of Madras in the case of Velayudhaswamy Spinning Mills (P) Ltd [2010 (3) TMI 860 - MADRAS HIGH COURT] held as under: “we are therefore, of the view that loss in the year earlier to the initial assessment year already absorbed against the profit of the other business cannot be notionally brought forward and set-off against the profits of the eligible business as no such mandate is provided in section 80IA (5) of the Act.” We therefore, do not find any merits in the findings of the first appellate authority. We, accordingly, direct the Assessing Officer to allow the claim of deduction u/s 80IA of the Act to the assessee as claimed by it - Decided in favour of assessee.
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