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2015 (7) TMI 1185 - AT - Income TaxGross Total Income computation for availing deduction u/s 80IB - whether the loss of one unit of business need not be adjusted against the profit of other unit of business in order to arrive at GTI? - Held that:- Legal issue raised by the revenue is squarely covered in favour of the assessee by various decisions of the Tribunal as well by that of the Delhi High Court in the case of Sona Koyo Steering Systems Ltd. [2010 (2) TMI 83 - DELHI HIGH COURT] wherein held that S. 80-I deduction is allowable without setting off loss of other units as each unit is to be treated as a separate and independent unit u/s 80-I (6) of the I.T. Act and the deduction has to be computed as if the industrial undertaking was the only source of income of the assessee. It is only those industrial undertakings which have a profit or gain which have to be considered for computing the deduction. The loss making industrial undertaking would not come into the picture at all. The loss of one such industrial undertaking cannot be set off against the profit of another such industrial undertaking to arrive at a computation of the quantum of deduction that is to be allowed to the assessee u/s 80-I (1). As subsection (5) of section 80-IA is almost identically worded as section 80-I(6) CIT(A) therefore correctly applied the law laid down by the Hon’ble Delhi High Court in the case of “Sona Koyo Steering Systems Ltd” (supra). Also see case of Meera Cotton & Synthetic Mills Ltd [2009 (2) TMI 506 - ITAT MUMBAI ] as held that deduction u/s 80IB is to be allowed with reference to profits of a particular undertaking and that the loss suffered in other eligible unit of the assessee can not be set off against the profits of eligible unit in question while calculating the amount of deduction u/s 80IB of the Act. - Decided against revenue
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