https://www.taxtmi.com/caselaws?id=310888 ITAT Surat allowed the assessee's claim for deduction under section 80IA(5) for power generation through windmill. The AO had denied the deduction, arguing that losses from the power unit in initial years should be set off against current year profits, leaving no profit eligible for deduction. The Tribunal held that notional losses cannot be set off against profits of eligible business units as no such mandate exists in section 80IA(5). Following the Madras HC precedent in Velayudhaswamy Spinning Mills case and the assessee's own favorable decision for AY 2010-11, the Tribunal directed the AO to allow the deduction as claimed. en-us Mon, 23 Oct 2017 00:00:00 +0530 Thu, 23 Nov 2023 19:53:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=310888 ITAT Surat allowed the assessee's claim for deduction under section 80IA(5) for power generation through windmill. The AO had denied the deduction, arguing that losses from the power unit in initial years should be set off against current year profits, leaving no profit eligible for deduction. The Tribunal held that notional losses cannot be set off against profits of eligible business units as no such mandate exists in section 80IA(5). Following the Madras HC precedent in Velayudhaswamy Spinning Mills case and the assessee's own favorable decision for AY 2010-11, the Tribunal directed the AO to allow the deduction as claimed. Case-Laws Income Tax Mon, 23 Oct 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=310888