Loss from windmill business can be set off against other heads of income

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DCIT Vs. M/s. Bellad & Co. (ITAT Bangalore) -

Facts:- The assessee is a partnership firm dealing in automobiles and Sony products and also into generation of electricity from windmills. The assessee filed its return of income for AY 2007-08 declaring income of Rs.11,52,410/- after setting off of depreciation loss pertaining to windmill installed during the financial year relevant to assessment year under appeal. The AO, in the assessment completed, disallowed loss of Rs. 1,22,30,626/-.

Held- Since the issue in the instant case is directly covered by the judgment of the Hon’ble jurisdictional High Court cited supra, we are of the view that the order of the first appellate authority directing the AO to set off loss from windmill business against other heads of income of the assessee is justified and no interference is called for.