2019 (12) TMI 458

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rd Mr.T.R.Senthil Kumar, learned Counsel for the appellant and Mr.M.P.Senthil Kumar, learned Counsel for the respondent. 3.This tax case appeal is admitted on the following substantial questions of law: "(i)Whether on facts and in the circumstances of the case, the Income Tax Tribunal was right in upholding the order of CIT(A), who directed the assessing officer to ignore all depreciation loss from wind mill business prior to assessment year 2000-01? (ii)Whether on the facts and in the circumstances of the case, the Income Tax Tribunal was right in holding the unabsorbed deprecation loss prior to initial assessment year could be notionally carried forward while computing deduction u/s.80IA? (iii)Whether on the ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... an undertaking or enterprise from an eligible business (as referred to in Sub-Section (4) of that Section) in accordance with the prescribed provisions. Sub-Section (2) of Section 801A further provides that the aforesaid deduction can be claimed by the assessee, at his option, for any ten consecutive assessment years out of fifteen years (twenty years in certain cases) beginning from the year in which the undertaking commences operation, begins development or starts providing services etc. as stipulated therein. Sub-Section (5) Section 801A further provides as under : "Notwithstanding anything contained in any other provision of this Act, the profits and gains of an eligible business to which the provisions of Sub-Section (1) appl....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....hat once such initial assessment year has been opted for by the assessee, he shall be entitled to claim deduction u/s 801A for ten consecutive years beginning from the year in respect of which he has exercised such option subject to the fulfillment of conditions prescribed in the section. Hence, the term 'initial assessment year' would mean the first year opted for by the assessee for claiming deduction u/s 801A. However, the total number of years for claiming deduction should not transgress the prescribed slab of fifteen or twenty years, as the case may be and the period of claim should be availed in continuity. The Assessing Officers are, therefore, directed to allow deduction u/s 801A in accordance with this clarification and af....