2018 (7) TMI 489

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....p with the above appeal, raising the following substantial question of law:- Whether the Appellate Tribunal right in law in holding that assessee is entitled to deduction under Section 80IA without setting off the losses/unabsorbed depreciation pertaining to the windmill, which were set off in the earlier year against other business income of the assessee, following the decision of the Jurisdiction High Court in the case of M/s.Velayudhasamy Spinning Mills (340 ITR 477) when the same is pending appeal before the Hon'ble Supreme Court in SLP Civil 1136 of 2011? 3. As regards substantial question of law, is concerned, it is the fair representation of the learned Senior Standing Counsel for Income Tax Department that this Court has b....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....at while confirming the order of the Commissioner of Income-Tax (Appeal), the Income-Tax Appellate Tribunal, at paragraph Nos.6 and 7 held as follows: "6. Aggrieved, the assessee preferred an appeal. In the grounds raised before the CIT(A), he pleaded three folded averments i.e. reopening was not sustainable, it is entitled for deduction under Section 80IA and the issue was covered by the order of the 'Tribunal' in assessment years 2004-05 and 2005-2006. We find that the CIT(A) has agreed to assessee's latter arguments by observing as follows: 6.0. I have considered the submissions of the assessee and the material available on record. The assessee has raised an objection regarding the validity of the reopening ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....unit. Further, the decision in the case of Sri Velayudhasamy Spinning Mills Pvt Ltd will apply in respect of the claim for the set off of losses. Therefore the assessee's appeal is allowed. This leaves the Revenue aggrieved. 7. We have heard the Revenue and gone through the case file. Admittedly, while granting relief to assessee on merits, the CIT(A) accepted its argument that each wind mill division is a separate entity is itself and option of claiming deduction under Section 80IA rests with the assessee. From the statement of facts filed by the Revenue, it is noticed that its mere argument is that against the decision of the Hon'ble Jurisdictional High Court, Special Leave Petition before the Apex Court is pendi....