Tribunal upholds CIT(A) decision on deduction under Section 80IA for windmills.

The tribunal upheld the decision of the ld. CIT(A) regarding the entitlement to deduction u/s 80IA of the Act on windmills, dismissing the appeal of the Revenue. The tribunal found no error in the ld. CIT(A)'s order and confirmed the allowance of deduction u/s 80IA for the assessee, based on a decision of the Hon'ble Jurisdictional High Court supporting the claim. The Revenue's grounds of appeal were dismissed, and the assessee's entitlement to the deduction was upheld.

---

---

Issues Involved:
- Condonation of delay in filing the appeal by the Revenue
- Entitlement to deduction u/s 80IA of the Act on windmills

Condonation of Delay:
The appeal filed by the Revenue was delayed by 19 days in the Assessment Year 2007-08. The Revenue filed condonation petitions, and the delay was condoned by the tribunal based on reasonable cause for not filing the appeal in time. The appeal was admitted for hearing after the delay was condoned.

Entitlement to Deduction u/s 80IA of the Act on Windmills:
The main issue in this appeal was the entitlement of the assessee to deduction u/s 80IA of the Act on windmills. The Revenue contended that the ld. CIT(A) was not justified in allowing the deduction. The assessee had installed windmills in different assessment years and opted for a specific initial assessment year for claiming the deduction. The Revenue argued against the deduction based on various grounds, including the interpretation of the initial year for claiming the deduction and the treatment of unabsorbed depreciation from earlier years.

In response, the assessee cited a decision of the Hon'ble Jurisdictional High Court in a similar case, which supported the assessee's claim for deduction u/s 80IA. The tribunal examined the facts, noting that the assessee had set off losses from windmills against profits from other divisions and had not claimed the deduction during loss years. The ld. CIT(A) upheld the assessee's claim for deduction u/s 80IA based on the High Court's decision, directing the computation of profits as if the eligible business was the only source of income for the assessee.

The tribunal found no specific error in the ld. CIT(A)'s order and observed that the Revenue failed to provide any material to challenge the High Court's decision. Consequently, the tribunal upheld the ld. CIT(A)'s order, dismissing the grounds of appeal raised by the Revenue and confirming the allowance of deduction u/s 80IA for the assessee.

In conclusion, the tribunal dismissed the appeal of the Revenue, upholding the decision of the ld. CIT(A) regarding the entitlement to deduction u/s 80IA of the Act on windmills.

---