(Judgment of the Court was delivered by Dr.Anita Sumanth, J.,) The above Tax Case Appeal is preferred by the Revenue under Section 260A of the Income Tax Act, 1961, calling in question the correctness of order dated 30.12.2013, passed by the Income Tax Appellate Tribunal, Chennai, in I.T.A.No.1577/Mds/2012.
2. The following questions of law, have been raised for consideration:-
“(i) Whether under the facts and circumstances of the case, the Hon'ble Income Tax Appellate Tribunal was right in law in holding that assessee is entitled to deduction under Section 80 IA without setting off the losses/unabsorbed depreciation pertaining to the windmill power generation business, 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 V. Assistant Commissioner of Income Tax (340 ITR 477) when the same is pending appeal before the Hon'ble Supreme Court in SLP Civil No.1136/11?
(ii) Whether under the facts and circumstances of the case, the Income Tax Appellate Tribunal was correct in holding that the initial assessment year in Section 80 IA(5) would only mean the year of claim of deduction under Section 80 IA and not the year of commencement of eligible business?
(iii) Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee has the option to choose the first/initial assessment year of claim for deduction under Section 80 IA?"
3. The issue relating to the claim of depreciation on windmill without setting off the losses/unabsorbed depreciation of earlier years stands covered against the Revenue and in favour of the assessee by a decision of this court in M/s.Velayudhasamy Spinning Mills V. Assistant Commissioner of Income Tax (340 ITR 477), affirmed by the Supreme Court.
4. In this view of the matter, there is no merit in the Departmental appeal which stands dismissed at the stage of admission. No costs.
Index: Yes / no Internet: Yes/no ssk.
(H.G.R.,J) (A.S.M.,J) 25th January 2017 HULUVADI G. RAMESH, J., AND DR.ANITA SUMANTH, J., ssk.
T.C.A.No.416 of 2014 25.1.2017 http://www.judis.nic.in