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TMI Blog2020 (1) TMI 908X X X X Extracts X X X X X X X X Extracts X X X X ..... subject to fulfillment of condition prescribed in the section. Further, it is clear before the decision of Hon ble Madras High Court in the case of CIT vs. G.R.T. Jeweler India Pvt. Ltd. [ 2016 (3) TMI 1071 - MADRAS HIGH COURT] as referred in the decision of ld. CIT(A) after referring Board s circular held that losses/unabsorbed depreciation pertaining to wind mill which were set off in the earlier assessment years against other business income of the assessee, cannot be notionally brought forward and again set off against the income of eligible business of the year which was chosen as initial assessment year for claim of depreciation u/s. 80IA - Decided in favour of assessee. - ITA No. 1849/Ahd/2017 (Assessment Year 2013-14) - - - Dated:- 5-12-2019 - Shri Amarjit Singh, Accountant Member And Ms. Madhumita Roy, Judicial Member Revenue by: Shri Rajdeep Singh, Sr. D.R. Assessee by: Shri Bandish Soparkar, A.R. ORDER PER: AMARJIT SINGH, ACCOUNTANT MEMBER:- This revenue s appeal for A.Y. 2013-14, arises from order of the CIT(A)-2, Vadodara dated 04-05-2017, in proceedings under section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by his predecessor in the case of the assessee. The relevant part of the decision of ld. CIT(A) is reproduced as under:- 4.1.2 In order to settle the controversy and also to avoid litigation, CBDT has also issued a circular clarifying the meaning of term Initial assessment year vide Circular No. 1 of 2016 dated 15.02.2016 which is reproduced as under:- Section 80-IA of the Income-tax Act, 1961 ('Act'), as substituted by the Finance Act, 1999 with effect from 1-4-2000, provides for deduction of an amount equal to 100 % of the profits and gains derived by an undertaking or enterprise from -- an eligible business (as referred to in sub-section (4) of-that--section) in accordance with the prescribed provisions. Subsection (2) of section 80-IA further provides that the aforesaid deduction can be claimed by the assessee, at his option, for any ten consecutive assessment years out of fifteen years (twenty 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 80-IA further provides as under- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Assessing Officers are, therefore, directed to allow deduction u/s 80-IA in accordance with this clarification and after being satisfied that ail 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 subsection (5) of that section for which the Standing Counsels/D.R.s be suitably instructed. The above be brought to the notice of all Assessing Officers concerned. After considering the above mentioned circular, Hon'ble Madras High Court vide order dated 01.03.2016 in the case of CIT Vs. M/s. G.R.T. Jewellers (India) Pvt. Ltd. contained in TCA No. 176 of 2016 have held that losses/unabsorbed depreciation pertaining to Wind Mill, which were set off in the earlier year against other business income of the assessee, cannot be notionally brought forward and again set off against the income of eligible business of the year which was chosen as initial assessment year for claim of deduction u/s. 80IA. I also find that SLP filed by the Departm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o. 1 of 2016 (F.No. 200/31/2015-ITA-I) dated 15-02- 2016. We have gone through the above referred circular submitted by the ld. counsel which is also elaborated in the findings of ld. CIT(A) as cited above in this order. It is categorically explained in the circular that to claim deduction u/s. 80IA, the assessee has option to choose the initial year from which it intends to claim deduction for 10 consecutive years out of period of 15 years 15 years is the outer limit and the same is beginning from the year in which the undertaking or enterprise develop and begin to operate any infrastructure activity etc. The Co-ordinate Bench of the ITAT in the case of the Jivraj Tea Industries Ltd. vs. ACIT (2014) 42 taxman.com 462 (Ahd. Trib.) has already adjudicated such issue in favour of the assessee. The relevant part of the decision is reproduced as under:- Jivrai Tea Industries Ltd, v/s ACIT F20141 42 taxmann.com 462 (Ahd - Trib.) Section 80-IA of the Income-tax Act, 1961 -Deductions - Profits and gains from infrastructure undertakings (Computation of deduction) - Whether when an assessee exercises option of choosing initial assessmen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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