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TMI Blog2016 (7) TMI 253X X X X Extracts X X X X X X X X Extracts X X X X ..... that the past losses have to be notionally adjusted even when they were adjusted against other income in earlier years. Assessee has also raised a ground, being ground of appeal No.6, against disallowance of weighted deduction made by the Assessing Officer under S.35(2AA) of the Act, even though the payments were made for approved research institution to carry on an approved research activity. At the time of hearing, the learned counsel for the assessee submitted that the assessee does not wish to press ground of appeal No.6 with regard to disallowance of deduction claimed under S.35(2AA) of the Act. Accordingly, the ground of appeal No6 is rejected as not pressed. 2. As regards other grounds, i.e. grounds No.1 to 5, relating to deduction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see's own case in earlier years, wherein the deduction under S.80IA was allowed after set off of the earlier years' unabsorbed losses. Duly following the same and also the Special Bench decision of the Tribunal in the case of ACIT V/s. Gold mine Shares and Finance (P) Ltd. (302 ITR (AT) 208 (Ahd)(SB)), he disallowed the claim of deduction under S.80IA of the Act. 3. Aggrieved, assessee preferred an appeal before the CIT(A), who also followed the decision of the Tribunal in assessee's own case for earlier years and confirmed the disallowance made by the Assessing Officer . 4. Aggrieved, assessee is in second appeal before us. 5. Though the learned counsel for the assessee fairly admitted that the issue has been decided against the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r S.80IA. 7. The Learned Departmental Representative, on the contrary, supported the orders of the CIT(A), relying on the decisions of the Tribunal on this issue in assessee's own case for earlier years. 8. Having regard to the rival submissions and the material on record, we find it necessary to reproduce the relevant provision of the Act for proper appreciation and understanding of the provision of law. "Deductions in respect of profits and gains from industrial undertakings or enterprises engaged in infrastructure development, etc. 80-IA.(1) to (4) ....... (5) Notwithstanding anything contained in any other provision of this Act, the profits and gains of an eligible business to which the provisions of sub-section (1) apply shall, fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee, at his option, for any ten consecutive assessment years out of fifteen years (twenty years in certain cases) beginning from the year in which the undertaking commences operation, begins development or starts providing services etc. as stipulated therein. Sub-section (5) of section 801A further provides as under "Notwithstanding anything contained in any other provision of this Act, the profits and gains of an eligible business to which the provisions of sub-section (1) apply shall, for the purposes of determining the quantum of deduction under that sub-section for the assessment year immediately succeeding the initial assessment year or any subsequent assessment year, be computed as if such eligible business were the onl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion subject to the fulfillment of conditions prescribed in the section. Hence, the term 'initial assessment year' would mean the first year opted for by the assessee for claiming deduction u/s 801A. However, the total number of years for claiming deduction should not transgress the prescribed slab of fifteen or twenty years, as the case may be and the period of claim should be availed in continuity. The Assessing Officers are, therefore, directed to allow deduction u/s 801A in accordance with this clarification and after being satisfied that all the prescribed conditions applicable in a particular case are duly satisfied. Pending litigation on allowability of deduction u/s 80 IA shall also not be pursued to the extent it relates to inter ..... X X X X Extracts X X X X X X X X Extracts X X X X
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