2015 (10) TMI 2649

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....flour milling and windmill power generation. The assessee filed the return of income for the A.Y 2006-07 on 25.11.2006 admitting a total income of Rs. 82,23,304/-. Processing u/s 143(1) was completed on 25.12.2007. During the year, assessee had claimed deduction u/s 80lA(4) of Rs. 18,08,000/- from business of power generation from NEPC windmill. The assessee also owned four other windmills. The Assessing Officer has taken the profit & losses of all the windmills by treating all the windmills as a single undertaking for claiming deduction u/s 80lA and has stated that as there will not be any surplus profit to claim deduction u/s 80IA(4), the deduction claimed by the assessee u/s 80lA cannot be allowed and hence, there was a reason to believe....

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....d to the proposal of reopening of the assessment vide letter dated 5.9.2013 before the Assessing Officer. It stated that the entire details relating to the computation of the deduction u/s 80lA in respect of the income from windmills has been filed with the Assessing Officer during the course of original assessment proceedings u/s 143(3) and though there is no discussion in the assessment order, the said details must be deemed to have been duly considered by the Assessing Officer while competing the assessment u/s 143(3) especially in view of the fact that the deduction claim is supported by the Auditor's Certificate as required u/s 80IA(7). Therefore, the proposal to reopen the assessment is based on mere change of opinion. The assesse....

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.... the windmills together and there was net loss from the windmill activity all put together. The details of net loss worked out by the appellant are as under - Particulars Date of capitalization Profit/Loss for A.Y NEPC 27-03-1995 18,08,372 Vistas 15-02-2002 (38,53,063) NEG Micon 05-03-2004 (1,73,37,806) Enercon 30-09-2004 (4,03,24,963) Vistas 31-03-2006 (13,583) Net Loss   (5,97,21,043) As the net result from all the windmills put together is Rs. 5.97 crores loss in AY.06-07 the Assessing Officer has denied the benefit for the year. On the other hand, the ld.AR has submitted that it was claiming deduction from each windmill treating each windmill as a separate busi....

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....t against the assessment order u/s 143(3) of the Act dated 17.12.2008, the assessee went in appeal before the CIT(A). Before the CIT(A), the Addl. CIT sought enhancement of assessment vide his request dated 10.8.2011 which reads as follows: "Kindly refer to the above. 2. A letter of the Assistant Commissioner of Income-tax, Company Circle I(3), Chennai in No. Co.Cir-I(3)/2011-12 dated 03.08.2011 in the case of M/s Century Flour Mills Ltd, Chennai PAN AAACC 1223 Capital for the assessment years 2006-07 and 2007-08 is forwarded herewith for Commissioner's kind consideration. 3. In the above mentioned case, the assessments u/s 143(3) were completed on 17.12.2008 and 22.10.2009 for assessment years 2006-07 and 2007-08....

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....T(A) in his appellate order dated 31.10.2013 by observing as under: "Proposal for enhancement: 10. As in the assessment year 2006-07, as discussed in para 7 above in ITA No.366/13-14, the then AO vide letter dated 03-08-2011, endorsed by the then Additional CIT vide letter dated 10th August 2011, requested the then CIT(A)-Ill that the taxable income of the appellant be considered for enhancement by making disallowance of deduction under section 80IA profits from windmill applying the provisions of section 80IA(5) for the assessment year 2007-08 also. The relevant extract of the letter AO has already been reproduced in para 7 above. While adjudicating this issue in ITA No. 366/13-14 I have already held that I did n....

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....posal to the Addl. CIT for enhancement of income by disallowing the relief allowed u/s 80IA of the Act treating the windmill as a separate undertaking. According to the Assessing Officer, all the windmills are to be treated as a single undertaking and therefore, the assessee would not be entitled to the relief allowed in the assessment passed u/s 143(3) of the Act. The CIT(A) rejected the claim of the Assessing Officer and observed that each windmill is to be considered independent and separate and as a consequence deduction u/s 80IA to be computed. As such, the issue in dispute travelled upto the Tribunal also at the instance of the Department. The Tribunal vide order in I.T.A.Nos. 715 to 718/Mds/2014, dated 21.11.2014 agreed with the view....