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2019 (8) TMI 927 - AT - Income TaxRectification u/s 154 - AO adjusted the losses of two units against profit generated by four units thereby reducing the claim of deduction u/s 80IA - HELD THAT:- Only a mistake which is glaring and apparent can be rectified u/s 154. In the case before us, the AO had set off the loss of the eligible units from the profits of the eligible units to calculate the deduction u/s 80IA. Whether the loss from the eligible units cannot be set off from the profits of other eligible units is a debatable issue and therefore, it cannot be rectified u/s 154 of the Act. Therefore, we allow the ground of appeal of the assessee. On merits of the issue which is raised in Ground No.2, we find that the issue is covered in favour of the assessee by various decisions which are relied upon by the assessee. Sub-section 5 of Section 80IA provides that the deduction should be calculated in respect of an eligible unit on a standalone basis i.e. as if it is the only source of income to the assessee. This is for the reason that an assessee is eligible for deduction u/s 80IA for a period of 10 years and the first of these ten years can be selected by the assessee. We hold that the loss of the eligible units cannot be set off against the profits of other eligible units. It is only the business income of the eligible unit and not the gross total income eligible for deduction u/s 80IA of the Act, we find that the case law relied upon by the assessee and in support of ground No.2 are also applicable to this issue. Respectfully following the same, we delete the findings of the CIT (A).
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