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TMI Blog2019 (11) TMI 934X X X X Extracts X X X X X X X X Extracts X X X X ..... o claim deduction u/s 80IA for ten consecutive years beginning from the year in respect of which he has exercised such option 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 80IA in accordance with this clarification and after being satisfied that all the prescribed conditions applicable in a particular case are dul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of Velayudhaswamy Spinning Mills, 340 ITR 477 is applicable to the facts of the present case and thereby allowing the deduction on windmill income under Section 80IA? 3. The Division Bench of this court in Principal Commissioner of Income Tax-3, Coimbatore v. Prabhu Spinning Mills (P) Ltd. (supra) held as under:- 3. Even according to the learned Standing Counsel for the Department, this Court has consistently followed the decision in M/s.Velayudhaswamy Spinning Mills (P) Ltd. v. Assistant commissioner of Income Tax ((2012) 340 ITR 477), despite the Honourable Supreme Court ordering notice. 4. Interestingly, on the basis of the decision in Velayudhaswamy Spinning Mills (supra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ible 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 only source of income of the assessee during the previous year relevant to the initial assessment year and to every subsequent assessment year up to and including the assessment year for which the determination is to be made. In the above Sub-Section, which prescribes the manner of determining the quantum of deduction, a reference has been made to the term 'initial assessment year'. It has been represented th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... availed in continuity. The Assessing Officers are, therefore, directed to allow deduction u/s 80IA 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 interpreting 'initial assessment year' as mentioned in Sub-Section (5) of that section for which the Standing Counsel/DRs be suitably instructed. The above be brought to the notice of all Assessing Officers concerned. 5. Therefore, admittedly, the second question of law is covered by the above circular. Hence, the appea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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