11 November 2010
The Assessee company’s main business is Spinning Mill from 1980s. The Company is also into power generation thro wind mills since 1991. The company has not claimed deduction u/s.80IA till date.
Is it possible to claim deduction u/s. 80IA for the profits from the windmill business in the Asst. year 2011-12.?
12 November 2010
No. It is not possible. The period covered,for the power generating undertakings, as per my understanding, is beginning with 1.4.1993 and ending on 31.3.2003. Your company has started generation of power from 1991. That's why it is not eligilble. Secondly, there is a limited period say 15 years or 20 years in which the benefit U/s 80IA is allowed for say 10 consecutive assessment years. This time limit is also almost finished.
Facts: The Windmills are planted in various towns during various period. The first windmill was erected in 1991. They further added in various towns in 1996, 1999,2003,2005.
Observation: As per my understanding, to claim 80IA deduction, the following two conditions out of various conditions have to be satisfied:
1. The Windmill undertaking which started generating power after 1.4.1993 are eligible for deduction u/s.80IA if separate books are maintained for each windmill undertaking.
2. 15 years should NOT have elapsed from the date of commencement of operation of Winmill undertaking.
Therefore, may I construe that the windmills started after 1995 are eligible for sec.80IA.
14 November 2010
as per section 80-IA the essential condition for claiming deduction is that the enterprise should carry on business of (a) devlopeing,(b)operating and maintaining or (c) devlopeing, operating and maintaining any infrastructure facility.
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