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TMI Blog2011 (8) TMI 1365X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. The ld. CIT(A) erred in holding that the initial assessment year for the purposes of section 80IA(20 r.w.s.80IA(5) was the year in which the assessee started generating the electricity without appreciating that the term initial assessment year for the above purposes was the first year in which the assessee claimed the deduction u/s 80IA(1). 3. The ld. CIT(A) erred in holding that the past losses of the undertaking entitled to claim deduction u/s 80IA which have been set off in the earlier years should have been set off against the profit of the aid undertaking for the current year and only on the balance income, the deduction u/s 80IA was to be allowed to the assessee. 4. The ld. CIT (A) failed to appreciate that the provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r and such an option cannot be taken away by the revenue. In this regard, he relied on a reported decision of this Bench in the case of Poonawalla Estate Stud and Agro Farm Pvt.Ltd. v. ACIT(2011) 136 TTJ (Pune) 236 and read out paragraphs 13 to 15 of the said order, which are reproduced hereunder for the sake of completeness of this order. 13. We have heard both the parties and perused the factual matrix of the case and orders of the revenue and the paper book. We have also examined the legal position on the matter. Before adjudicating the issue in question, it is necessary to examine the scope of the provisions relating to the initial assessment year. 80IA. Deductions in respect of profits and gains from industrial undertaking ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re facility referred to in cl.(b) of explanation to cl.(i) of sub-s.(4), the provisions of this subsection shall have effect as if for the words fifteen years , the words twenty years had been substituted . 14. From the above provisions of sub-s.(2) of s.80IA of the act, it is evident that the assessee is granted the option to select initial assessment year i.e. first assessment year of the any ten consecutive assessment years out of fifteen years. Starting assessment year for counting the duration of fifteen years is also provided in the aid sub-section. As per thee provisions, the assessee is not allowed to jump the assessment year once an initial assessment year is opted. Therefore, we find no fault with the assessee in sel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment year and when the assessee has so chosen the current assessment year as the initial assessment year 4 and when the assessee accordingly paid the taxes o the profits of the windmill activity in the earlier years as per the statute, the assessing officer s decision to thrust the initial assessment year on the assessee is not in tune with the provisions of s.80IA(2) of the act. Accordingly, we are of the opinion, the ld. CIT (A) erred in holding that the initial assessment year for the purposes of s.80IA(2) r.w.s.80IA(5) was the year in which the assessee started generating the electricity. Therefore, the order of the CIT (A) has to be reversed on this issue. It is clear that the initial assessment year for the above purposes was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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