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

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 separate unit for the assessment years 2012-13, 2013-14, and 2014-15. The Tribunal dismissed the Revenue's appeals, emphasizing the need for independent computation of deductions for each windmill, maintaining consistency with previous tribunal decisions and the absence of contrary judgments.

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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.

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