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TMI Blog2015 (10) TMI 1600X X X X Extracts X X X X X X X X Extracts X X X X ..... evance of the assessee pressed before us relates to disallowance of deduction claimed u/s 80IA of the Act by setting of lossess and depreciation of Windmill unit eligible for deductions u/s 80IA of the Act. 4. Rival contentions have been heard and record perused. From the record we found that in A.Y. 2008-09 the assessee's claim for deduction u/s 80IA amounting to Rs. 38,30,569/- was allowed in respect of Wind Farm Division while framing assessment u/s 143(3) of the Act. Thereafter, the CIT initiated action u/s 263 of the Act wherein A.O. was directed to examine the assessee's claim of eligibility for deduction u/s 80IA(5) of the Act after reducing losses in the form of unabsorbed depreciation which have already been set off in ear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sment year up to and including the assessment year for which the determination is to be made. Section 80IA (2) grants option to the assessee to claim deduction for any ten consecutive assessment years out of fifteen years beginning from the year in which the unit generates power. Exercising option granted u/s 80IA(2), the assessee chose to claim deduction u/s 80IA from AY 2008-09. Once the option is exercised, the wind mill unit will be treated as if it is only source of income from year of exercise of option. Hence there does not arise any question of notionally bringing forward losses from earlier assessment year from of putting up of wind mill which has already been set off against business income. In support of the proposition that loss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 80IA as substituted w.e.f. Ist April, 2000, gives an option to the assessee for choosing any 10 consecutive assessment years out of 15 years beginning from the year in which the undertaking of the enterprise develops and begins to operate for claiming the deduction. As per sub-so (5) of S. 80-IA, the quantum of deduction under S. 80-IA for the assessment year immediately succeeding the initial assessment year or any subsequent assessment year is to be computed as if the eligible business is the only source of income. Since the assessee has exercised the option of choosing the asst. yr. 2008-09 as initial assessment year as per sub-section (2) of S. 80-IA, only the losses of the years starting from that initial assessment year alone are to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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