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2020 (1) TMI 546 - AT - Income TaxDeduction u/s 80IA - whether loss of non-eligible units should be first adjusted with the profit of the eligible unit and deduction should be allowed in respect of net profit under the head profit and gain of the business/profession of the assessee? - whether any loss of non-eligible unit should be adjusted with the profit of the eligible unit for determining profit eligible for deduction under section 80IA? - HELD THAT:- For computing deduction u/s 80IA profit of the eligible units have only to be considered subject to the upper limit of Gross total income. In view of the decision of SONA KOYO STEERING SYSTEMS LTD. [2010 (2) TMI 83 - DELHI HIGH COURT] we set aside finding of the CIT(A) in the instant case to set off the loss of the other non-eligible unit against the profit of the eligible unit for computation of the deduction eligible under section 80-IA of the Act. In the instant case, on perusal of Certificate No.10CCB in view of the facts appearing in the form No.10CCB, it needs verification, whether the loss making unit was also eligible for deduction under section 80-IA of the Act and if so the claim of deduction under section 80-IA of the Act has to be computed for both eligible units. CIT(A) has not adjudicated on the addition made by the AO in respect of the interest income which was not derived from the business of the eligible undertaking. In view of the complete financial information in respect of the two units of the assessee not available before us, in interest of the Justice, we feel it appropriate to set aside the order of the CIT(A) and restore the issue back to him for deciding afresh in accordance with law, after verification of financial statements of both the units of the assessee. It is needless to mention that both the parties, i.e., the assessee as well as the Assessee Officer shall be afforded adequate opportunity of being heard. The grounds of the appeal of the assessee are accordingly allowed for statistical purposes.
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