Chitra Venkataraman,J.

This Tax Case (Appeal), filed at the instance of the assessee as against the order of the Income Tax Appellate Tribunal relating to the assessment year 1995-96, was admitted by this Court on the following substantial questions of law:

"1. Whether on the facts and in the circumstances of the case, the Tribunal is right in law in holding that the depreciation loss from the WEG arises to an AOP and the portion of the said loss attributable to the appellant cannot be allowed as a set off against appellant's income, on the ground that no return has been filed by the AOP and the appellant's loss determined?

2. Whether on the facts and in the circumstances of the case, the Tribunal is right in law in holding that the depreciation loss or share thereof cannot be set off against the income of the appellant?"

2. The assessee, a member of association of persons (AOP) with six other parties, entered into a joint venture on 01.08.1994 to put up a wind energy generator in the name of M/s.Renuga Wind Energy Farm in areas specified by the Tamil Nadu Government and approved by the Tamil Nadu Electricity Board. The parties agreed to share income/loss of the joint venture