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TMI Blog2015 (8) TMI 124X X X X Extracts X X X X X X X X Extracts X X X X ..... ed return of income on 28.08.2010 by declaring total income of Rs. 21,01,36,650/-. Subsequently, it has filed a revised return on 08.04.2011 declaring a revised income of Rs. 20,04,95,980/- and claimed deduction of Rs. 96,40,665/- under section 80IA of the Income Tax Act. In the assessment order, the Assessing Officer has disallowed the deduction claimed by the assessee of Rs. 96,40,665/- under section 80IA of the Act mainly on the ground that the Department has filed SLP before the Hon'ble Supreme Court challenging the decision of the Hon'ble Jurisdictional High Court in the case of Velayudhaswamy Spinning Mills P. Ltd. v. ACIT 231 CTR (Mad) 368): [2012] 340 ITR 477 . 3. Against the order of the Assessing Officer, the assessee car ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of the profits and gains derived from such business for ten consecutive assessment years.] (2) The deduction specified in sub-section (1) may, at the option of the assessee, be claimed by him for 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 any infrastructure facility or starts providing telecommunication service or develops an industrial park [or develops a special economic zone referred to in clause (iii) of subsection (4)] or generates power or commences transmission or distribution of power [or undertakes substantial renovation and modernisation of the existing transmission or distribution lines ): (4) This section applie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ub-s (1), it is clear that it provides that where the gross total income of an assessee includes any profits and gains derived by an undertaking for an enterprise from any business referred to in sub-s(4) i.e. referred to as the eligible business, there shall, in accordance with and subject to the provisions of the section, be allowed, in computing the total income of the assessee, a deduction of an amount equal to 100 percent of the profits and gains derived from such business for ten consecutive Assessment Years. Deduction is given to eligible business and the same is defined in sub-s (4). Subs-s(2) provides option to the assessee to choose 10 consecutive Assessment Years out of 15 years. Option has to be exercised. If it is not exercised ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich were already set off against the income of the assessee. Looking forward to a period of ten years from the initial assessment is contemplated. It does not allow the Revenue to look backward and find out if there is any loss of earlier years and bring forward notionally even though the same were set off against other income of the assessee and the set off against the current income of the eligible business, Once the set off is taken place in earlier year against the other income of the assessee, the Revenue cannot rework the set off amount and bring it notionally. Fiction created in subsection does not contemplate to bring set off amount notionally. Fiction is created only for the limited purpose and the same cannot be extended beyond t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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