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TMI Blog2019 (1) TMI 403X X X X Extracts X X X X X X X X Extracts X X X X ..... e for deductionu/s.80IA(4)(iv) on his business profit without setting off his earlier years' business losses/unabsorbed depreciation which have already been set off against income from other business/sources and provisions of section80IA(5) are applicable only for initial assessment year? 2. On the fact and in the circumstances of the case, the Ld. CIT(A) was not justified in deleting the addition made by the AO on account of generation of scrap out of repairs and maintenance expenses of Rs. 2,00,000/- as the assessee has not maintained separate details of such expenses. 3. The appellant prays that the order of the CIT(A) be vacated and that order of the Assessing Officer may be restored. 4. The appellant craves leave to add, alter, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as follows : 4. The Ld. CIT(Appeal) relied on the decision of Pune Bench of the Tribunal which is ruled in favour of the assessee in ITA Nos.377 to383/PN/2013 in the case of M/s. RDS Construction Company, Kolhapur and provided relief to the assessee as per following observations: "5.1 Ground No.1 in appeal is against the disallowance of claim of deduction under section 80IA of the Act. The appellant filed its original return of income on 29.09.2012 declaring total income at Rs. 21,78,05,193/- after claiming deduction under section 80IA(4)(iv) ofRs.66,68,523/- in respect of its windmill income. The Assessing Officer examined the claim of the appellant under section 80IA and noted that the first year of operation of the windmill was in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it has been held asunder: ....................... 136. Respectfully following the decision of the Coordinate Bench of the Tribunal cited (supra.) and in absence of any contrary material brought to our notice we hold that the provisions of section 80IA(5) are applicable only from the initial assessment year i.e. the assessment year in which deduction u/s.80IA (4)was first claimed by the assessee after exercising its option as per the provisions of section 80IA(2) of the Act. The order of the Ld.CIT(A) is accordingly upheld and the ground raised by the Revenue is accordingly dismissed. 5.1.1 Similarly, I have also perused the clarification regarding the term"initial assessment year" in section 80IA(5) issued by the CBDT in Circular No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fourth year of the claim under section 80IA.In the light of the above discussion and respectfully following the decision of Honorable ITAT in the appellant's own case as well as the Circular of the CBDT cited supra, the Assessing Officer is directed to allow the deduction under section 80IA(4)(iv) as claimed. In the circumstances, the disallowance made by the assessing officer is deleted." 5. We have perused the case record and heard rival contentions. We find that the Ld. CIT(Appeal) on this issue has given relief to the assessee based on the Tribunal's decision in ITA Nos.377 to 383/PN/2013 and in this casealso, the Tribunal has referred to its earlier decision in the case of Poonawal Estate Stud. & Agro Farm Pvt. Ltd. wherein it has bee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ls of such expenses. 8. On this issue, Ld. CIT(Appeal) was of the view that in the assessment order itself, there appears to be no specific reason for making the addition. The only reason stated by the AO is that he does not rule out any scrap being generated out of machinery repairs. This observation is not supported by specific enquiry and also that the Assessing Officer had not even examined the nature of repairs undertaken to the machinery and whether in fact such nature of repairs has the capacity to generate scrap, also does not come out from his order. There is absolutely no shred of evidence to show that scrap has indeed been generated and sold. It is absolutely on suspicion and guesswork, addition has been made which is not permi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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