TMI Blog2018 (8) TMI 2011X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the assessee it has claimed set-off of unabsorbed profit of eligible business, which cannot be carry forward and set-off against the profits on non eligible unit in subsequent assessment years - in our humble understanding of provisions of the Act and considering the provision of section 72 of the Act. We are of the view that the CIT (A) has justified in refusing the claim of the assessee. - I.T.A No.2196 & 2197/Ahd/2015 & 339/Ahd/2016/SRT - - - Dated:- 10-8-2018 - SHRI C.M.GARG, JUDICIAL MEMBER AND SHRI O.P.MEENA, ACCOUNTANT MEMBER For the Assessee : Shri S. D. Chheda, CA For the Revenue : Shri J. K. Chandnani, Sr. D.R. ORDER PER O. P. MEENA, ACCOUTANT MEMBER: 1. These three appeals by the Assessee are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s been reduced by ₹ 16,35,199 [ 1,65,40,184- 1,49,04,985] because of set of loss in non-eligible units. Thus, it has unabsorbed deduction to the extent of ₹ 16,35,199. Thus, the assessee has claimed deduction of ₹ 7,87,684, ₹ 2,01,730 and ₹ 5,75,979 for assessment years 2010- 11, 2011-12 and 2012-13 respectively out of profit of non eligible units in subsequent assessment years i.e. A.Y. 2010-11,2011-12 and 2012-13 being unabsorbed deduction of A.Y. 2009-10 on the basis of carried forward notionally profit relying on the decision in the case of ACIT v. Goldmine Shares Stock Finance Pvt. Ltd. [2008] 113 ITD 209 (Ahd) (SB). Now the issue and controversy is whether the appellant can claim unabsorbed deduction o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 80IA(5), consistent with the object in allowing deduction only to profits and gains of the eligible business would be that a. the deduction under that section would be computed with reference to profits of the eligible unit , unaffected by losses suffered in other units; b. in case of loss suffered by eligible unit, such loss would not be set-off against profits of other units/ other business/other incomes in the initial year of assessment, or subsequent years of eligible years of assessments; c. where losses of the eligible unit remained to be adjusted against the very source there to be carry forward to subsequent year(s) ; and set-off in the succeeding year(s), and on the balance profit, alone deduction admissible would ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Therefore, the reliance by the assessee is misplaced as the said decision pertained to brought forward losses and depreciation and not carry forward of unabsorbed deduction under section 80IB. Thus, the facts of said case are entirely different as in the case of the assessee it has claimed set-off of unabsorbed profit of eligible business, which cannot be carry forward and set-off against the profits on non eligible unit in subsequent assessment years. In the light of above facts and circumstances, in our humble understanding of provisions of the Act and considering the provision of section 72 of the Act. We are of the view that the CIT (A) has justified in refusing the claim of the assessee. In view of this matter, we are unable to see any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ACIT v. Goldmine Shares Stock Finance Pvt. Ltd. [2008] 113 ITD 209 (Ahd) (SB) 16. We have heard the rival submissions and perused the relevant material on record. We find that the grounds of appeal for this assessment year are same as in assessment year 2010-11. Hence, our findings as recorded while disposing off grounds of appeal for the assessment year 2010-11 discussed in this part of order above would mutatis mutandis apply for this assessment year also. In view of these facts, the grounds of appeal for the assessment year 2011-12 are dismissed. 17. In view of above discussion and our findings, the appeal of the assessee for the assessment year 2010-11, 2011-12 and 2012- 13 is treated as dismissed. 18. Order pronounced in t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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