TaxTMI 
TaxTMI 
2017 (10) TMI 1643
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.... Central Circle-1 Surat (in short "the AO") under section 143 (3) of Income Tax Act, 1961 (in short 'the Act'). The assessee has taken following grounds of appeal:- 1. The learned CIT(A) grossly erred in confirming the addition of Rs. 39,978 on account of value of diamond being difference in 0.54 carat as per para 4 of CIT (A) order. The learned CIT (A) grossly erred in confirming the addition of Rs. 1,24,93,596 on account of disallowance of deduction under section 80IA(5) of the Act as per para 5 of CIT (A) order. The learned CIT (A) grossly erred in holding the charge of interest u/s. 234B & 234C of the Act without giving credit of cash seized for Rs. 18 lacs which the appellant requested for adjustment of tax against demand in t....
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.... also not selected a) the initial year. The assessee has selected the "initial year" for the assessment year 2008-09. Therefore, the assessee is entitled to deduction under section 80IA of the Act for 15 years from the "initial year" as selected by it. Therefore, if there is any carry forward loss or depreciation, which needs to be set-off in the initial year i.e. in the A.Y. 2008-09 and the net amount would be eligible for deduction. It was submitted that in this case, the carry forward loss and depreciation of earlier year was already set-off against taxable income of other division (diamond division) and, therefore, there was nothing remain as carry forward loss and depreciation of the power undertaking. Therefore, it was urged that the ....
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....ved that in recent decision in the case of Hercules Hoist Ltd. v. ACIT in I.T.A. No. 7944,7946,2255 & 7943/Mum/2011 dtd. 13.02.2013 in which decision in the case of Velayudhaswamy Spinning Mills (P) Ltd. v. ACIT [2010] 231 CTR (Mad) 368 (HC) was considered and after considering the same the CIT (A) has held that that the assessee is not eligible for deduction under section 80IA(5) of the Act. 6. Being, aggrieved the assessee filed this appeal before the Tribunal. At the outset, the Id. Counsel for the assessee submitted that the issue is squarely covered in assessee's own case in the A.Y. 2010- 11 of Tribunal in I.T.A. No. 1749 & 1750/Ahd/2013 dated 08.06.2017 in which it was held as under: "In our considered opinion, the lower authoriti....
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....ry forward in the A.Y. 2007-08 as it was set-off against income of diamond division in earlier year, the entire income of power division for A.Y. 2008-09 is eligible for deductions. It was further submitted that when a High Court decision in favour of the assessee as against the decision of Tribunal is available, then the decision of High Court is to be followed as held in the case of CIT v. Smt. Godavari Devi Saraf [1978] 113 ITR 589 (Bom). 7. On the other hand, the Ld. CIT (DR) could not controvert the argument of the assessee that the facts of the case are not identical as in assessment year 2010-11 as held by the Tribunal in its favour. 8. We have heard the rival submissions of both the parties and perused the material available o....