2019 (8) TMI 1900 - AT - Income Tax

Tax Tribunal Confirms Separate Deductions for Each Windmill Unit u/s 80IA(4) for 2012-15 Assessments.

Asst. Commissioner of Income Tax, Dy. Commissioner of Income Tax, Jt. Commissioner of Income Tax (OSD), Circle – 7, Pune Versus M/s. L.B. Kunjir,

The ITAT upheld the Commissioner's decision to allow the assessee's claim for deduction under section 80IA(4) of the Income Tax Act for each windmill as a ... Deduction u/s. 80IA(4) - income derived from the four windmills separately - AO rejected assessee’s claim by treating all the four windmills as single undertaking - HELD THAT:- It is an undisputed fact that the date of commencement of operation of each windmill is different. The stand of the Revenue is that instead of claiming deduction u/s. 80IA(4) on each windmill as separate unit, the assessee should have computed deduction on all the windmills as single undertaking. We find that the issue whether deduction u/s. 80IA(4) is to be computed on each windmill unit separately or on consolidated basis was considered in the case of M/s. D.J. Malpani Vs. ACIT [2015 (12) TMI 896 - ITAT PUNE] Since, the issue has already been considered by the Tribunal and has held that each unit of windmill has to be considered separately for computing deduction u/s. 80IA(4), we see no reason to deviate from the view already taken. No contrary judgment has been placed on record before us by the Revenue. DR has pointed that the Department has filed appeal against the Tribunal’s decision in the case of M/s. D.J. Malpani [2015 (12) TMI 896 - ITAT PUNE], however, no order by the Hon’ble High Court either staying or reversing the aforesaid decision of Tribunal has been furnished by the DR. No infirmity in the order of CIT (A) in allowing assessee’s claim of deduction u/s. 80IA(4) considering each windmill as separate unit for allowing deduction u/s. 80IA(4). Issues involved:- Assessee's claim of deduction u/s. 80IA(4) of the Income Tax Act for assessment years 2012-13, 2013-14, and 2014-15.- Whether windmills set up at different locations should be considered as separate units for claiming deduction.Analysis:1. Assessee's Claim of Deduction u/s. 80IA(4):- The Revenue challenged the Commissioner of Income Tax (Appeals) decision to allow the assessee's claim of deduction u/s. 80IA(4) for the assessment years 2012-13, 2013-14, and 2014-15.- The assessee had set up four windmills at different locations and claimed deduction separately for each windmill under section 80IA(4) of the Act.- The Assessing Officer treated all four windmills as a single undertaking, rejecting the assessee's claim.- The Commissioner of Income Tax (Appeals) allowed the deduction based on previous tribunal decisions and the decision of the Hon'ble Madras High Court.- The Tribunal considered each windmill as a separate undertaking eligible for deduction u/s. 80IA(4) and upheld the Commissioner's order, emphasizing the need to compute the deduction independently for each windmill.2. Consideration of Windmills as Separate Units:- The Tribunal analyzed the issue of whether deduction u/s. 80IA(4) should be computed on each windmill unit separately or on a consolidated basis.- Previous tribunal decisions and absence of contrary material led the Tribunal to conclude that each windmill should be considered a separate undertaking for the deduction.- Despite the Revenue's appeal against a similar tribunal decision, no contrary judgment was presented to deviate from the established view.- The Tribunal upheld the Commissioner's decision to consider each windmill as a separate unit for claiming deduction u/s. 80IA(4), dismissing the Revenue's appeal.3. Uniformity in Assessment Years 2012-13, 2013-14, and 2014-15:- The facts and issues regarding the deduction u/s. 80IA(4) for the assessment years 2012-13 and 2014-15 were found to be identical to the assessment year 2013-14.- The disallowance of deduction by the Assessing Officer and its subsequent allowance by the Commissioner of Income Tax (Appeals) were consistent with the tribunal's decision in the case of M/s. D.J. Malpani Vs. ACIT.- Given the uniformity in issues, the Tribunal applied its findings from the assessment year 2013-14 to dismiss the Revenue's appeals for the assessment years 2012-13 and 2014-15.In conclusion, the Appellate Tribunal upheld the Commissioner's decision to allow the assessee's claim of deduction u/s. 80IA(4) for each windmill as a separate unit, emphasizing the need for independent computation of deductions. The Tribunal maintained consistency in its approach across the assessment years 2012-13, 2013-14, and 2014-15, dismissing the Revenue's appeals based on the established principles and previous tribunal decisions.