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TMI Blog2016 (7) TMI 675X X X X Extracts X X X X X X X X Extracts X X X X ..... Manikumar And D. Krishnakumar, JJ. For the Appellant : Mr. T. R. Senthil Kumar For the Respondent : No appearance JUDGMENT ( Judgment of the Court was made by S. Manikumar, J ) Challenge in this Tax Appeal, is to an order passed by the Income Tax Appellate Tribunal in ITA No.2317/Mds/2011, dated 19.12.2014, by which, the Tribunal dismissed the appeal preferred by the revenue, against the order of the Commissioner of Income-Tax (Appeals)-II, Coimbatore dated 30.06.2014 for the Assessment Year 2010-11. 2. Revenue has come up with the above appeal, raising the following substantial questions of law:- 1. Whether under the facts and circumstance of the case, the Hon'ble Income Tax Appellate Tribunal right in la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (P) Ltd., v. Assistant Commissioner of Income-Tax reported in 340 ITR 477. He also submitted that challenge to the same, is pending before the Hon'ble Apex Court in SLP No.1136 of 2011. 5. Central Board of Direct Taxes has issued Circular No.1/ 2016, dated 15/2/2016 and the same reads as follows:- Circular No. 1 /2016 Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes North Block, New Delhi, the 15th February,2016 Subject: Clarification of the term initial assessment year' in Section 80IA(5) of the Income Tax Act, 1961 Section 801A of the Income-tax Act, 1961 ( Act ), as substituted by Finance Act, 1999 with effect from 1.4.2000, provides for ded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing Officers are interpreting the term initial assessment year as the year in which the eligible business/manufacturing activity had commenced and are considering such first year of commencement/operation etc. itself as the first year for granting deduction, ignoring the clear mandate provided under Sub-Section (2) which allows a choice to the assessee for deciding the year from which it desires to claim deduction out of the applicable slab of fifteen (or twenty) years. The matter has been examined by the Board. It is abundantly clear from Sub-Section (2) that an assessee who is eligible to claim deduction u/s 80IA has the option to choose the initial/first year from which it may desire the claim of deduction for ten consecutive year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T reported in (2009) 225 CTR (SC) 233 : (2009) 28 DTR (SC) 73 : (2009) 317 ITR 218 (SC) and the judgment of the Rajasthan High Court in CIT vs. Mewar Oil General Mills Ltd. reported in (2004) 186 CTR (Raj) 141 : (2004) 271 ITR 311 (Raj), a Hon'ble Division Bench of this Court in Velayudhaswamy Spinning Mills Pvt. Ltd.,'s case (stated supra), held that once the losses and other deductions are set off against the income of the assessee in the previous year, it should not be re-opened again, for the purpose of computation of current year income, under Section 80-I and 80-IA of the Act. 7. Velayudhaswamy Spinning Mills Pvt. Ltd.,'s case (stated supra), has been followed in CIT v. R.Yuvaraj reported in [2015] 57 TAXMANN.COM 252 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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