The Tribunal held that the assessee is not required to notionally reduce losses arising from eligible business in earlier years already set off against other business of assessee in terms of sections 70 , 71 and 72 prior to exercise of option of initial assessment year. Losses arising in eligible business subsequent to earmarking of initial Assessment year to be governed by embargo placed in section 80IA(5) of the Act . ( Circular No. 1 of 2016 dt. 15-2-2016 ( 2016) 381 ITR(St) 1 ) .( AY.2012-13)
Dy. CIT v. Chhotabhai Jethabhai Patel and Co. (2020) 81 ITR 5 (SN) (Ahd) (Trib)
S. 80IA :Industrial undertakings – Infrastructure development-
Generation Of Electricity — Initial assessment year — Not required to notionally reduce losses arising from eligible business in earlier years already set off against other business – Losses arising in eligible business subsequent to earmarking of initial Assessment year to be governed by embargo placed in section 80IA(5) of the Act [ S.70 , 71 ,72 ,80IA(4),80IA(5) ]