Section 80IA(5)- Once the set off Loss & Depreciation of eligible unit prior to initial assessment year has taken place in an earlier year against the other income, the Revenue cannot rework the set off amount and bring it notionally

Shri. Anil H. Lad Vs DCIT (ITAT Bangalore)- Where the depreciation and loss of earlier assessment years have already been set off against other business income of those assessment years, there is no need for notionally carrying forward and setting off of the same depreciation and loss in computing the quantum of deduction available u/s. 80I. The Honourable Court has held further that the year of commencement alone need not be the “initial year”, but depending upon the facts of the case and the option exercised by the assessee, the year of claim also can be considered as “ini...