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2013 (11) TMI 135 - AT - Income TaxLoss on account of windmill business eligible for deduction as per section 80-IA - Set-off of business loss from priority undertaking against income under other heads – Held that:- Following case of Synco Industries Ltd. v. Assessing Officer (Incometax) [2008 (3) TMI 13 - Supreme court] – If the gross total income includes any profits and gains derived from an industrial undertaking u/s 80-I deduction of 20 per cent of profits is allowed. The words "includes any profits" which indicate that the gross total income of an assessee shall include profits from a priority undertaking. While computing the quantum of deduction under section 80-I(6), the Assessing Officer has to treat the profits derived from an industrial undertaking as the only source of income in order to arrive at the deductions under Chapter VI-A - The non obstante clause appearing in section 80-I(6), is applicable only to the quantum of deduction, whereas, the gross total income under section 80B(5) which is also referred to in section 80-I(1) is required to be computed in the manner provided under the Act which presupposes that the gross total income shall be arrived at after adjusting the losses of the other division against the profits derived from an industrial undertaking. Section 80A(2) and section 80B(5) are declaratory in nature. They apply to all the sections falling in Chapter VI-A. They impose a ceiling on the total amount of deduction and, therefore, the non obstante clause in section 80-I(6) cannot restrict the operation of sections 80A(2) and 80B(5) - Section 80-I(6) deals with actual computation of deduction whereas section 80-I(1) deals with the treatment to be given to such deductions in order to arrive at the total income of the assessee and, therefore, while interpreting section 80-I(1), which also refers to gross total income one has to read the expression 'gross total income' as defined in section 80B(5) – Decided against Revenue.
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