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2015 (3) TMI 455 - HC - Income TaxDeduction u/s 80 IA on profits of the new eligible industrial unit - Whether ITAT is correct in allowing deduction u/s 80 IA on profits of the new eligible industrial unit without setting off the losses of other unit against the profit of the new industrial undertaking in view of the specific provisions contained to the contrary in Section 80 AB and Section 80B(5) of the Income Tax Act, 1961? - Held that:- Assessee could not dispute that in view of the Apex Court's decision in Synco Industries Ltd. vs. Assessing Officer, Income Tax, Mumbai (1975 (2) TMI 86 - SUPREME COURT OF INDIA) and this Court's decision in Commissioner of Income Tax Vs. Arif Industries Ltd. (2010 (3) TMI 857 - Allahabad High Court ) wherein held Section 80A(2) and Section (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) which operate in different spheres. As observed earlier 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). therefore, this Court is of the opinion that the High Court was justified in holding that the loss from the oil division was required to be adjusted before determining the gross total income and as the gross total income was 'Nil' the assessee was not entitled to claim deduction under Chapter VI-A which includes Section 80-I also The non obstante clause in sub-section (6) of section 80-I refers to only the quantum of deduction, therefore, the gross total income referred to in section 80-I(1) is to be read with section 80B(5) and only then the computation is to be made in the manner provided under the Act - The mandate contained in sections 80A and 80B(5) requires that gross total income should be computed after setting off the brought forward business loss and unabsorbed depreciation, etc. for allowing of the deductions specified under sections 80C to 80U - Decided in favour of Revenue
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