2015 (1) TMI 1369

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.... assessee claimed deduction u/s 80IA of the Act in respect of wind mill generating power. The assessee had set up the wind mill during the year relevant to the assessment year 2006-07. However, it started claiming deduction only from AY 2009-10 as per the option provided in sec. 80IA(2). The AO noticed that the assessee had incurred losses from wind mill operation in assessment years 2006-07 and 2007-08 and the assessee had set off those losses against income generated from non-eligible businesses. In assessment year 2008-09, even though the assessee made profit, it did not claim deduction u/s 80IA. 3. As per the provisions of sec. 80IA(2), the deduction specified in subsection (1) may, at the option of the assessee, be claimed by him fo....

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....case of Velayudhaswamy Spinning Mills (P) Ltd Vs. ACIT (2010)(38 DTR (Mad) 57, wherein the Hon'ble High Court had held as under:- " 6. Adverting to the facts of the case, the initial assessment year in this case starts from 2004-05 since the assessee has opted to claim this deduction only in this assessment year, the initial assessment year cannot be the year in which the undertaking commenced its operations and in this case, the initial assessment year is the assessment year in which assessee has chosen to claim deduction under s. 80-IA. Hence, the provisions of s. 80-IA(5) treating undertaking as a separate sole source of income cannot be applied to a year prior to the year in which assessee opted to claim relief under s. 80-IA f....