2017 (5) TMI 1206

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....CIT(A) has erred in allowing deduction under section 80-IA of the Income Tax Act, 1961 ["Act" in short]. 3. The assessee is a company, engaged in the business of wheat flour milling and windmill power generation and filed its return of income on 30.09.2013 admitting its income of Rs. 8,42,39,360/-. The case was taken for scrutiny through CASS and assessment under section 143(3) of the Act was completed on 11.01.2016, wherein, the Assessing Officer made various disallowances including disallowance of deduction under section 80-IA of the Act on wind mill. 4. During the course of assessment proceedings, it was observed by the Assessing Officer that the assessee had claimed the deduction under section 80-IA of the Act for a sum of Rs. 16,....

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.... has a separate power purchase agreement with TANGEDCO and has separate meter for recording of electricity generated and supplied and that each of the windmill is to be treated as a separate undertaking for the purpose of computing the relief under section 80IA of the Act. We find that on an identical issue in similar facts, in assessee's own case for the assessment year 2010-11 in I.T.A. No. 2225/Mds/2015 dated 29.01.2016, the Coordinate Benches of the Tribunal has observed and held as under: "3. In this case, the assessee had during the previous year relevant to the asst. year 2010-11 seven windmills from which power was being generated and used for own consumption as well as being supplied to TNEB. The Commissioner of Income-tax(Appea....

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.... On appeal, the ld. CIT(A) allowed the ground raised by the assessee. 10. On being aggrieved, the Revenue is in appeal before Tribunal and the ld. DR dutifully supported the order passed by the Assessing Officer. 11. We have heard the rival contentions. The only dispute of the Assessing Officer is that on verification of the profit and loss account, an amount of Rs. 78,195/- has been belatedly paid by the employer and hence the same was disallowed under section 43B of the Act and added to the income of the assessee. The ld. CIT(A) has observed that in the CBDT Circular No. 22/2015 dated 17.12.2015 in F.No. 279/Misc/140/2015-ITJ, it has been clarified that the Apex Court decision in the case of CIT v. Alom Extrusions Ltd. 185 Taxman 41....

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....allowed the ground raised by the assessee. 15. We have considered the rival contentions. The disallowance was made on account that the assessee has made excess claim of depreciation. The ld. CIT(A) has observed that on an identical issue in the case of Devi Polymers P. Ltd. v. ACIT in I.T.A. No. 165/Mds/2014 dated 09.04.2014, the Tribunal has considered the decisions in the case of DCIT v. Brakes India Ltd. in ITA No. 1069/Mds2010 dated 06.01.2012 and in the case of CRI Pumps P. Ltd. v. ACIT, wherein, it has been held that additional depreciation to the extent not claimed by the assessee in the earlier year ought to be allowed. Thus, the ld. CIT(A) allowed the claim of the assessee. We find no reason to interfere with the order of the ld....