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TMI Blog2016 (3) TMI 589X X X X Extracts X X X X X X X X Extracts X X X X ..... n and for the subsequent years as well. Having exercised their option and their losses have been set off already against other income of the business enterprise, the assessee in this appeal falls within the parameters of Section 80IA of the Income Tax Act. See CIT Vs. See Velayudhasamy Spinning Mills (2010 (3) TMI 860 - Madras High Court ) - Decided in favour of the assessee. - ITA No.1462/PN/2014 - - - Dated:- 10-2-2016 - SHRI R.K. PANDA, AM AND SHRI VIKAS AWASTHY, JM For The Assessee by : Shri Nikhil Pathak For The Revenue : Shri Hitendra Ninawe ORDER PER VIKAS AWASTHY, JM : The appeal of the assessee is directed against the order of CIT(A)-I, Pune dated 28-02-2014 for the Assessment Year 2006-07. 2. The so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eduction u/s.80IA for the first time on the profits from windmill and not the first year of its operation. 5. The Ld. Authorised Representative submitted that the issue regarding eligibility of assessee to claim deduction u/s.80IA, vis- vis initial assessment year has been decided in favour of the assessee by the Coordinate Bench of the Tribunal in assessee s own case for A.Y. 2004-05 in ITA No.92/PN/2008 reported as 136 TTJ 236. The Pune Bench of the Tribunal has been consistently holding that the initial assessment year is the first year of any 10 consecutive assessment years out of the 15 years in which deduction u/s.80IA has been claimed for the first time. The Tribunal in a recent decision in the case of D.J. Malpani Vs. ACIT in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssue in favour of the assessee. The Tribunal held that initial assessment year for the purpose of claiming deduction u/s.80IA would be the first year in which the assessee has claimed deduction. The relevant extract of the findings of the Tribunal are reproduced herein below : 13. We have heard both the parties and perused the factual matrix of the case and orders of the Revenue and the paper book. We have also examined the legal position on the matter. Before adjudicating the issue in question, it is necessary to examine the scope of the provisions relating to the initial assessment year : 80-IA. Deductions in respect of profits and gains from industrial undertakings or enterprises engaged in infrastructure development, etc.-(1) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (4), the provisions of this sub-section shall have effect as if for the words fifteen years , the words twenty years had been substituted............... 14. From the above provisions of sub-s. (2) of s. 80-IA of the Act, it is evident that the assessee is granted the option to select initial assessment year i.e., first assessment year of the any ten consecutive assessment years out of fifteen years . Starting assessment year for counting the duration of fifteen years is also provided in the said subsection. As per these provisions, the assessee is not allowed to jump the assessment year once an initial assessment year is opted. Therefore, we find no fault with the assessee in selecting the asst. yr. 2004-05 as the initial assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee has so chosen the current assessment year as the initial assessment year and when the assessee accordingly paid the taxes on the profits of the windmill activity in the earlier years as per the statute, the AO s decision to thrust the initial assessment year on the assessee is not in tune with the provisions of s. 80-IA(2) of the Act. Accordingly, we are of the opinion, the learned CIT(A) erred in holding that the initial assessment year for the purposes of s. 80-IA(2) r/w s. 80-IA(5) was the year in which the assessee started generating the electricity. Therefore, the order of the CIT(A) has to be reversed on this issue. It is clear that the initial assessment year for the above purposes was the first year in which the assessee clai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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