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2017 (5) TMI 921 - AT - Income TaxSetting off of indirect income against the operational income / trading loss - claiming deduction u.s 80IB - Held that:- CIT (A) has discussed this issue in his order wherein he has held that if other income of ₹ 3,55,40,053/- is not considered as derived from industrial undertaking, the industrial undertaking would incur a loss of ₹ 3,04,71,195/- and such loss has to be adjusted against the other income which was in the nature of interest income, insurance claim etc. We find that this finding of Ld. CIT(A) is correct and is in accordance with the law as section 71 of the Income Tax Act allows set off of loss from one head against income from another head. In view of the above provisions of section 71 we do not find any infirmity in the order of Ld. CIT(A), therefore, ground no. 1 of revenue appeal is dismissed. Receipt of subsidy on account of excise duty refund is a capital receipt. See Balaji Alloys Ltd. case [2011 (11) TMI 712 - SUPREME COURT OF INDIA] Penalty u/s 271(1)(c) - Held that:- CIT(A) has correctly deleted the penalty relying on the decision of Delhi High Court in the case of Nalwa Sons Investment Ltd.[2010 (8) TMI 40 - DELHI HIGH COURT] and furthermore on CBDT circular no. 25/2015 of 2014 wherein the Department has issued directions to the authorities directing them not to file appeal where the income tax payable on the total income as computed under the normal provision of the Act is less than the tax payable on the book profits u/s 115JB of the Act. - Decided against revenue
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