2016 (7) TMI 309

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....e order of the learned CIT(A) is contrary to law and facts of the case. 2.1. The CIT(A) erred in deleting the disallowance of claim on deduction u/s.801A of Rs. 39,62,582/-. 2.2. The CIT(A) failed to appreciate that the initial assessment year purpose of sec.801A(5) would be year in which the assessee set up the wind mills. 2.3. The CIT(A) has erred in holding that the losses prior to assessment year 2008-09 would not enter into the computation of eligible profits. 2.4. The CIT(A) ought to have seen that after set off of unabsorbed depreciation and business losses of earlier years, there would be no profits on which the assessee may be entitled to claim deduction u/s.801A. 2.5. It is submitted th....

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....siness. The words ''initial assessment year'' are used in sub-s (5) and the same is not defined under the provisions. It is to be noted that initial assessment year employed in sub-s (5) is different from the words ''beginning from the year'' referred to in sub-s(2). Important factors are to be noted in sub-s(5) and they are as under: (1)it starts with non obstante clause which means it overrides all the provisions of the Act and other provisions are to be ignored; (2) it is for the purpose of determining the quantum of deduction; (3) for the assessment year immediately succeeding the initial assessment year ; (4) It is a deeming provision; (5) fiction created that the eligible business is the only source of income; and (6) during the previ....