2013 (2) TMI 481

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..... ear of commencement of business. Held that:- Respectfully, following the decision of the Hon'ble Jurisdictional High Court in the case of M/s Sri Velayudhasamy Spinning Mills [P] Ltd[2010 (3) TMI 860 - MADRAS HIGH COURT] the AO is directed to compute the profits u/s 80IA(5) of the Act as if such eligible business is the only sources of income of the assessee and only the losses of the years beginning from the initial Assessment Year are to be brought forward and not losses of earlier years which have been already set off against the income of the assessee. - Appeal of the Revenue is dismissed – Against the revenue.
SHRI HARI OM MARATHA AND SHRI N.S. SAINI, JJ. Appellant by : Shri R.B. Naik, CIT, DR Respondent by : Shri T. Banusekar, C .....

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..... aken into consideration for computing deduction u/s 80IA of the Act. 6. The learned CIT(A) ought to have appreciated that as per provisions of section 80IA(5) the undertaking eligible for deduction u/s 80IA of the Act should be treated as only source of income for computing the quantum of deduction. 7. The learned CIT(A) should have observed that since sub section 5 of section 80IA of the Act starts with an non obstante clause, the restriction put in subsection 5 will prevail and deduction u/s 80IA of the Act has to be restricted accordingly. 8. It is submitted that SLP has been filed against the judgment of the Hon'ble Jurisdictional High Court in the case of M/s Sri Velayudhasamy Spinning Mills [P] Ltd and others and is yet to be dispo .....

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..... ction u/s 80IA of the Act in respect of windmills. Initial loss from windmills was set off against profit of spinning mills division. The assessee did not claim deduction u/s 80IA of the Act during the years where the assessee suffered loss. The AO held that the initial year should be taken as the year of commencement of business and not the year of claim of deduction and that unabsorbed depreciation of the earlier years which had already been absorbed cannot be notionally carried forward and taken into consideration for computing deduction u/s 80IA of the Act. 8. In appeal, the ld. CIT(A) held as under: "I have gone through the submissions made by the assessee as well as the material available on record. The assessee runs a spinning mil .....

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