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TMI Blog2012 (8) TMI 463X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the Delhi units in the circumstances of the case?" 2. The Assessee had owned three units; two of them located in Delhi and the third at Baddi, Himachal Pradesh. The latter was eligible for benefit under Section 80 IC of the Income Tax Act. For the relevant period i.e. AY 2006-07, the assessee declared a loss of Rs. 45,89,621/- in respect of its two Delhi units. In respect of the Baddi unit, it claimed deduction under Section-80IC on the computed profit of Rs. 86,76,687/-. The Assessing Officer adjusted the losses of the Delhi units against the profits of the Baddi unit and arrived at profit eligible for deduction under Section 80 IC at Rs. 40,44,824/- The assessee carried the matter in appeal; the appeal was accepted by the CIT (A) wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave a profit or gain. In sub-section (7) of section 80IC, it has been provided that provisions contained in sub-section (5) and subsections (7) to (12) of section 80-IA shall, so far as may be, applied to the eligible undertaking or enterprises under this section, meaning thereby that same provision would be applicable in section 80-IC of the Act. Hon'ble Delhi High Court in the case of Dewan Kraft Systems (P) Ltd. and Sona Koyo (supra) has held that each unit will be considered independently. In view of the above, we are of the opinion that Learned First Appellate Authority has rightly applied the ratio of Hon'ble Delhi High Court and has rightly directed the Assessing Officer not to adjust the losses of Delhi Unit while computing the elig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction-80IA (5), the approach adopted by the Tribunal cannot be faulted. The Court also noticed that the same reasoning has been indicated in another Division Bench ruling in CIT v. Sona Koyo Steering Systems Ltd., (2010) 321 ITR 463. 5. As regards the question whether the assessee can carry forward the losses of the Delhi units, the matter is to be considered appropriately by the Assessing Officer. We express no opinion on the question as it does not arise out of the order of the Tribunal. However, it is clarified that the deduction cannot exceed the gross total income computed by the A.O. in this case, in view of Section-80A (2). 6. No substantial question of law arises for consideration. 7. The appeal is accordingly dismissed. X X X X Extracts X X X X X X X X Extracts X X X X
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