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2019 (3) TMI 14 - HC - Income TaxDeduction u/s 80IA - consolidated financials have been prepared for the entire business - Denial assessee from claiming deduction under section 80IA in respect of the one undertaking of its choice - HELD THAT:- We may, at this juncture, usefully refer to the provisions of section 80IB(5) of the Act which provides that in determining the quantum of deduction under section 80IA, the eligible business shall be treated as the only source of income of the assessee during the previous year relevant to the initial assessment year and to every subsequent assessment year upto and including the assessment year for which the determination is to be made. There is thus no doubt that each unit, including a CPP, has to be seen independently as separate and distinct from each other and as units for the purposes of grant of deduction under section 80IA of the Act. Where the assessee deserves profits from multiple units, all being eligible for deduction under Chapter VIA, the profits or losses arising from the respective units have to be considered in totality and only if the resultant figure were positive, would the assessee be entitled to its claim. Thus, the judgment M/S SYNCO INDUSTRIES LTD VERSUS ASSESSING OFFICER [2008 (3) TMI 13 - SUPREME COURT] considers the interplay between the income and losses arising from eligible units alone, all of which are eligible for deduction under Chapter VIA, and would not apply to the facts and circumstances of the present case whether the claim under Section 80I was restricted only to the 16 MW unit at Karnataka. Mr.Senthil Kumar, fairly, does not dispute this position. - Decided in favour of assessee.
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