Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (1) TMI 606 - AT - Income TaxDeduction u/s 35AD and set off u/s 73A against the loss incurred by it in other unit - HELD THAT:- We have considered the submission of the assessee in regular hearing and came to the conclusion that assessee is eligible to claim deduction and set off u/s 35AD and 73A respectively. While dealing with individual units, we have already adjudicated that the units Mumbai and Indore are specified business units and eligible to set off u/s 73A and can claim deduction u/s 35AD. We observe that Indore Unit was established before the cut off dates specified in section 35AD. Accordingly, even though Indore unit is comes under specified business, but cannot claim any benefit u/s 35AD. The same was acknowledged by the assessee. Loss of assessee on account of a specified business claiming deduction u/s 35AD would be allowed to set of against the profit of another specified business. U/s 73A, whether or not the later is eligible for deduction u/s 35AD. Therefore, by the above clarification, it is clear that assessee can claim set off against the profit from specified business units of Mumbai and Indore. We notice from the record that assessee has acknowledged that it is not claiming deduction u/s 35AD only. But we came to conclusion that assessee is not claiming deduction u/s 35AD as well as surrendering the set off u/s 73A. From the records placed before us, we direct AO to allow the assessee to claim set off against the profit earned from units Mumbai and Indore against the carry forward losses of Chandigarh units, as per the amended provision and clarification note given for Finance Bill 2011. Accordingly, MA filed for both the AYs are allowed.
|