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Case Law Details

Case Name : Velayudhaswamy Spinning Mills (P) Ltd. (Taxpayer)
Related Assessment Year :
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Velayudhaswamy Spinning Mills (P) Ltd. (Taxpayer), Madras High Court (HC) [38 DTR 57]

Under the Indian Tax Laws (ITL), a taxpayer carrying on the business of generation of electricity, which qualifies for income-linked deduction (eligible business), can opt to claim such deduction for a period of 10 assessment years (AYs) out of 15 years, beginning from the year in which the taxpayer commences generation of power.

The Madras HC held that the first AY in which the taxpayer op

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0 Comments

  1. Suman Vasani says:

    Sir ,

    Even I have a querry re: initial AY-

    The unit is set up in Hasan – SEZ in the year 2007-08 ..Mfr activity started from Apr 2008 & for 2008-09 & 2009-10 Accumulated Business Loss & Depeciation losses are there.. The unit is expected to record Business profit from FY 2010-11 , Can we select 1st AY as AY 2011-12..The SEZ Unit – is entitled to claim exemption of Profits 100% for 1st 5 years & there after 50% for subsequent 5 years

    Kindly give your suggessions

    Thanks

    Suman

  2. KN.MUTHIAH says:

    Iam anindividual having purchased four windmills in the year 2005,2006,2007,2008 and 2009.I claimed accelerated depreciation at 80 % every year and adjusted the losses in my other income.So far,I have not opted for 80 I A deduction. Now, I have sold all my windmills during this year (as on April 2010)and the profit realised is said will be considered as short term capital gain and taxed at 30 %.Now,Iam proposing to buy five windmills and claim depreciation.On account of depreciation Iwill not get any Taxable Profit.I propose to choose the initial year under section 80 Ia form 2013 and avail 100% deduction on my profits and gains from the new windmill proposal.Iam eligible to claim deduction for 10 years within the first 15 years.Now, my question is whether the commencement of the business year will be considered as 2005,the year in which initially entered into windmill business or the year 2010 in which Iam proposing to putup the present Newe Windmill Project.

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