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The Tax Publishers DCIT v. Kamal Encon Ind. Ltd. [ITA No. 873Chd/2015, dt. 6-5-2016] : 2016 TaxPub(DT) 2548 (Chd-Trib) Section 80IA benefit in a block of 10 consecutive years whether choice at option of assessee. *Facts:* Assessee was in the business of manufacturing heavy machinery. In addition they had commenced two eligible windmill units/businesses one in assessment year 2006-07 and one in 2005-06. The assessee opted for section 80IA deduction from assessment year 2009-10 for one unit and assessment year 2008-09. It was noticed by the assessing officer that in the prior years to the start year of section 80IA deduction; both units had incurred losses which was set off from the heavy machinery (non-eligible) business. Officer denied the deduction under section 80IA citing that if such an allowance of adjusting losses with choice of start year for 80IA deduction being optional at the choice of the assessee would intend double deduction by way of adjusting losses of post commencement years against ineligible business thus refused to grant the sec. 80IA deduction. On appeal Commissioner (Appeals) allowed the same holding that the start year is optional at the choice of the assessee. On further appeal: Held in favour of the assessee that the start year for section 80IA is optional in the window of 10 consecutive years in the span of 15 years. This cannot be denied to the assessee as the subsequent amendments made to the said section also point to the same.

The Tax Publishers

DCIT v. Kamal Encon Ind. Ltd. [ITA No. 873Chd/2015, dt. 6-5-2016] : 2016 TaxPub(DT) 2548 (Chd-Trib)

Section 80IA benefit in a block of 10 consecutive years whether choice at option of assessee.

Facts:

Assessee was in the business of manufacturing heavy machinery. In addition they had commenced two eligible windmill units/businesses one in assessment year 2006-07 and one in 2005-06. The assessee opted for section 80IA deduction from assessment year 2009-10 for one unit and assessment year 2008-09. It was noticed by the assessing officer that in the prior years to the start year of section 80IA deduction; both units had incurred losses which was set off from the heavy machinery (non-eligible) business. Officer denied the deduction under section 80IA citing that if such an allowance of adjusting losses with choice of start year for 80IA deduction being optional at the choice of the assessee would intend double deduction by way of adjusting losses of post commencement years against ineligible business thus refused to grant the sec. 80IA deduction. On appeal Commissioner (Appeals) allowed the same holding that the start year is optional at the choice of the assessee. On further appeal:

Held in favour of the assessee that the start year for section 80IA is optional in the window of 10 consecutive years in the span of 15 years. This cannot be denied to the assessee as the subsequent amendments made to the said section also point to the same.