9911796707
TMI Blog2019 (11) TMI 934X X X X Extracts X X X X X X X X Extracts X X X X ..... n Principal Commissioner of Income Tax-3, Coimbatore v. Prabhu Spinning Mills ((2016) 76 Taxmann.com 8 (Madras)) in which, relying upon the Board's Circular No.1/16 dated 15.12.2016, the Court allowed the Assessee to chose the initial assessment for claiming deduction under Section 80-IA of the Income Tax Ac,t 1961 as per his own option. 2. The question of law suggested in the present case by the Revenue is as under:- "Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the decision reported in 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 Be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wenty 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 80IA 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 only source of income of the assessee during the previous year relevant to the initial assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
