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2023 (4) TMI 275 - ITAT CHENNAIDeduction u/s.80IA - computation of eligible profit for the purpose of deduction - AO has allowed deduction u/s.80IA by setting off loss of one eligible unit to profit of another eligible unit and quantified net profit eligible for deduction - HELD THAT:- We find that this issue is squarely covered by the decision of Yakogawa India Ltd. [2016 (12) TMI 881 - SUPREME COURT] as held that while computing the quantum of deduction u/s.80IA(6) AO, no doubt, has to treat the profits derived from an industrial undertaking as the only source of income in order to arrive at deduction under Chapter VI of the Act. For the purpose of calculating deduction, loss sustained in one of the units is not to be taken into account, because, sub-section (6) contemplates that only the profit shall be taken into account as if it was the only source of income. The stage of deduction of profits & gains of the business of an eligible undertaking has to be made independently, and therefore, immediately after the stage of determination of profits & gains, and therefore, AO & the Ld.CIT(A) completely erred in re-computing deduction u/s.80IA by setting off loss of one eligible unit to profit of another eligible unit. We direct the AO to allow deduction claimed u/s.80IA without setting off loss of another eligible unit. Appeal filed by the assessee is allowed.
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