Case Law Details
CIT Vs Roots Multiclean Ltd. (Madras High Court)
It is abundantly clear from sub-section (2) of Section 80IA that an assessee who is eligible to claim deduction u/s 801A has the option to choose the initial/ first year from which it may desire the claim of deduction for ten consecutive years, out of a slab of fifteen ( or twenty) years, as prescribed under that sub-section. It is hereby clarified that once such initial assessment year has been opted for by the assessee, he shall be entitled to claim deduction u/s 801A 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.
FULL TEXT OF THE JUDGMENT/ORDER of MADRAS HIGH COURT
This tax case appeal has been filed by the appellant / Revenue, challenging the order dated 07.08.2015 passed by the Income Tax Appellate Tribunal, ‘C’ Bench, Chennai, in I.T.A.No. 323/Mds/2015, relating to the assessment year 2011-12, by raising the following substantial questions of law:-
“1. Whether under the facts and circumstance of the case the Hon’ble Income Tax Appellate Tribunal right in law in holding that assessee is entitled to deduction under section 80IA without setting off the losses / unabsorbed depreciation pertaining to the windmill, which were set off in the earlier year against other business income of the assessee, following the decision of the Jurisdiction High Court in the case of M/s. Velayudhasamy Spinning Mills (340 ITR 477) when the same is pending appeal before the Hon’ble Supreme Court in SLP Civil 1136/2011?
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