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2016 (7) TMI 409 - HC - Income TaxComputation of deduction under Section 80-IA - whether Assessing Authority has to calculate income of individual undertakings of assessee on the basis of unabsorbed business loss etc. in respect of each individual unit or it should be collectively'? - Held that:- In the present case, one Polymer Unit of the assessee has shown profit while Dairy Unit has shown loss and deduction was applied after absorbing loss of Dairy Unit. The approach of Revenue is clearly erroneous and contrary to the law laid down in Commissioner of Income-Tax and another Vs Modi Xerox Ltd. (2010 (4) TMI 858 - Allahabad High Court ) wherein held that under section 80-I(6) of the Act for the purposes of calculating the deduction, the loss sustained in one of the units, cannot be taken into account because sub-section (6) of the Act contemplates that only the profits shall be taken into account as if it was the only source of income - for the purposes of computation of gross total income the losses of other units are to be taken into account but for the purposes of calculating the deduction of industrial undertaking, the loss sustained in another unit cannot be taken into account and only the profit shall be taken into account as if it was the only source of income of that unit. In view of above, question formulated above is answered in favour of Assessee and against Revenue
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