2013 (2) TMI 481

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... 2007-08. The Revenue has filed condonation petitions and the ld. A.R. did not have any objection to the condonation of delay in filing the appeal by the Revenue and the hearing of the appeal on merits. We are satisfied that there was reasonable cause for not filing the appeal in time by the department. Hence we condone the delay and admit the appeal for hearing. 3. In this appeal, the Revenue has raised the following common grounds of appeal: "1. The order of the learned Commissioner of Income Tax (Appeals) is against facts and circumstances of the case. 2. The learned CIT(A) has erred in holding that the assessee is entitled to deduction u/s 80IA of the Act on windmills. 3. The learned CIT(A) ought to have observed that the in....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....aken by the Revenue in the appeal. 6. On the other hand, the ld. A.R. for the assessee Shri T. Banusekar filed before us copy of the Hon'ble Jurisdictional High Court order in the case of M/s Sri Velayudhasamy Spinning Mills [P] Ltd Vs. ACIT reported in [2010] 231 CTR [Mad] 368 and submitted that the issue at hand was squarely covered by the decision of the High Court in favour of the assessee. Further, the same is also evident from the grounds of appeal of the Revenue wherein the Revenue has taken a ground that the SLP which has been filed against the judgment of the Hon'ble Jurisdictional High Court in the case of M/s Sri Velayudhasamy Spinning Mills [P] Ltd and others [supra] is yet to be disposed off by the Hon'ble Supreme Court. ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....7-08 as initial Assessment Year for the purpose of claiming deduction u/s 80IA of the Act in respect of windmills I and II. Initially the loss from windmills was set off against profit of spinning mill division. The assessee had not claimed deduction u/s 80IA of the Act during those years when it resulted in loss. The assessee has opted Assessment Year 2007-08 as initial Assessment Year for the purpose of claiming deduction u/s 80IA. Respectfully, following the decision of the Hon'ble Jurisdictional High Court in the case of M/s Sri Velayudhasamy Spinning Mills [P] Ltd and others [supra], the Assessing Officer is directed to compute the profits u/s 80IA(5) of the Act as if such eligible business is the only sources of income of the assessee....