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2012 (11) TMI 507 - AT - Income TaxDeduction u/s 80IA - denial of claim - assessee also claimed deduction u/s.80HHC - Held that:- The gross total income of the assessee is at ₹ 8,03,26,598 lakhs after adjusting the losses suffered by it in the eligible as well as profits of the non-eligible units. There are no brought forward losses or unabsorbed depreciation. The claim of deduction under section 80-IA was in respect of eligible unit 4.14 MW wind energy division at ₹ 4,72,28,143 and the deduction u/s.80HHC was claimed in respect of other units at ₹ 15,51,440. Even if both the deductions are added the sum total is obviously less than the gross total income. Thus CIT(A) erred in interpreting the relevant provision when he held that the losses suffered by the assessee in two eligible units be reduced from the income of the other eligible unit before granting the deduction under section 80-IA - The assessee is allowed deduction under section 80-IA on the profit derived by it from eligible unit 4.14 MW wind energy unit at ₹ 4,72,28,143. In the case of Meera Cotton & Synthetic Mills (P.) Ltd. Versus Assistant Commissioner of Income-tax, Ward 9(2), Mumbai [2009 (2) TMI 506 - ITAT MUMBAI] after considering the decision of the Hon'ble Supreme Court in the case of M/s Synco Industries Ltd Versus Assessing Officer [2008 (3) TMI 13 - SUPREME COURT ] clearly held that the stage at which set off has to be done is only after aggregation of income under all heads. The CIT(A) did not agree with this reasoning of the ITAT which is held to be bad as the CIT(A) being an authority lower in the tier of authorities under the Act to that of the ITAT, is bound to follow the decision of the ITAT and cannot refuse it without any valid reasons - in favour of assessee.
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