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TMI Blog2017 (12) TMI 1257X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal in the case of M/s. J-Sons Foundry Pvt. Ltd. (2013 (1) TMI 778 - ITAT PUNE) and in the case of M/s. D.J. Malpani Vs. ACIT (2015 (12) TMI 896 - ITAT PUNE). Coming to the adjustment of losses of other windmill, which have been set off against the profits of another business carried on by the assessee i.e. manufacture of Zarda. The assessee pointed out that after adjusting the said losses return of income was offered at ₹ 19.69 crores. In view thereof, the proposition laid down by the Hon’ble Gujarat High Court in the case of Sintex Industries Ltd. Vs. Assistant Commissioner of Income Tax (OSD) (2013 (7) TMI 979 - GUJARAT HIGH COURT) is at variance where the income after adjustment of losses was Nil and hence, the said propos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellate proceedings before the Hon'ble Tribunal. 3. The issue raised in the preset appeal filed by the Revenue is against the allowance of deduction under section 80IA of the Act undertaking wise and not on a consolidated basis. 4. Briefly, in the facts of the case, the assessee for the year under consideration had furnished the return of income declaring total income of ₹ 19,69,17,066/-. The Assessing Officer noted that the assessee had claimed deduction under section 80IA(4)(iv)(a) of the Act at ₹ 2,42,34,693/- towards profit earned from wind power generation from its windmills. The assessee had claimed the aforesaid deduction undertaking wise. The Assessing Officer asked the assessee to justify its claim underta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deduction under section 80IA(4) is to be allowed undertaking wise and not on consolidated basis. 6. The Revenue is in appeal against the order of CIT(A). 7. The ld. DR for the Revenue pointed that the Hon ble Supreme Court in Synco Industries Ltd. Vs. Assessing Officer reported in (2008) 299 ITR 444 (SC) has held that the gross total income is to be arrived at after adjusting losses of other division against profits derived from an industrial undertaking. Accordingly, it was proposed by the ld. DR for the Revenue that the order of Assessing Officer needs to be upheld. Further reliance was placed on the ratio laid down in Sintex Industries Ltd. Vs. Assistnat Commissioner of Income Tax (OSD) [2013] 37 taxmann.com 217 (Gujarat). 8. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at ₹ 20 crores. Referring to the reliance placed upon by the ld. DR for the Revenue on the decision of Hon ble Gujarat High Court in the case of Sintex Industries Ltd. Vs. Assistant Commissioner of Income Tax (OSD) (supra), the ld. AR for the assessee pointed that in the said case, the gross total income was Nil and hence the curtailment in deduction claimed under section 80IA(4) of the Act. He further pointed out that section 80IA(2) of the Act sum of the aggregating income being Nil, whereas in assessee s case the same was not the situation. 9. We have heard the rival contentions and perused the record. The issue which arises in present appeal filed by the Revenue is vis-a vis the claim of deduction under section 80IA(4)(iv)(a) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... return of income at ₹ 19.69 crores. However, against the profits from the windmill at Satara Phase I, the assessee had claimed the deduction under section 80IA(4) of the Act at ₹ 2.42 crores. The Assessing Officer was of the view that the assessee was entitled to claim the deduction under section 80IA(4) of the Act after adjusting the losses from windmill against the profits of the windmill at Satara and hence, curtailed the deduction under section 80IA(4) to ₹ 1.69 crores as against ₹ 2.42 crores claimed by the assessee. 11. The issue of treating each windmill to be a separate undertaking on which deduction under section 80IA(4) is to be allowed has been decided by the Pune Bench of the Tribunal in the case of M/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... djusting losses of other division against profits derived from an industrial undertaking. 13. Applying the said principle laid down by the Apex Court, the Hon ble Gujarat High Court (supra) while deciding the case of an assessee before it i.e. M/s. Sintex Industries Ltd. Vs. Assistant Commissioner of Income Tax (supra) curtailed the deduction under section 80IA of the Act on account of income derived from CPP and deduction under section 80IB of the Act on account of Baddi unit, since it had incurred losses in the Daman unit. In the facts of the said case after allocation of losses of Daman unit the net income was Nil and hence the deduction claimed under section 80IA/80IB of the Act was curtailed. 14. Now, coming to the facts of the p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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