Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (10) TMI 243 - AT - Income TaxDeduction u/ss.80HH & 80I allowed before setting off of loss of another division - Held that:- There is no issue between the parties so far as facts of the case are concerned. The assessee claims section 80HHC and 80I deduction qua its profits derived from Mandali Undertaking whereas it has incurred losses from toilet soap division quoting case law of CIT vs. Modi Xerox [2010 (4) TMI 858 - Allahabad High Court ], CIT vs. Emmbros Metal (P) Ltd. [2012 (10) TMI 61 - HIMACHAL PRADESH, HIGH COURT] and CIT vs. Premier Explosives Ltd [2014 (10) TMI 708 - ANDHRA PRADESH HIGH COURT], to pray for acceptance of its appeal. We put a specific query to the parties as to whether or not the hon'ble jurisdictional high court has decided this substantial question of law. The reply received is in negative. We proceed further and notice that hon'ble Allahabad high court hereinabove has considered case law of Synco (2008 (3) TMI 13 - Supreme court ) and observes that two principles of law emerged therefrom. The first one is that for the purpose of computing gross income, losses of other units are to be taken into consideration. The second one is that the very course is not to be adopted whilst computing section 80HHC/80I deductions and the profits are to be considered as if the same are the only source of income of that unit. The Revenue fails to quote any distinction on facts or law. Therefore, we accept the assessee's legal submission on first aspect of the matter. We come to objection of the lower authorities on applicability of section 80A amendment (supra) and find that the same is only introduced by the Finance Act, 2009 with retrospective effect from 1.4.2003 and does not deal with the relevant issue of adjustment of losses. We further reiterate that the impugned assessment year is 1991-92. The assessee's sole substantive ground accordingly succeeds. - Decided in favour of assessee.
|