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2015 (12) TMI 625

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..... e Act was referable to total income which was required to be worked out after taking into account the loss, if any. This view was upheld by the CIT(A) as well as the Tribunal. This Court while dismissing the appeal of the assessee held that in computing the quantum of deduction under section 80I of the Act, out of the profits and gains of unit No.1, the loss incurred in another independent unit No.2 should be set off against the profits of unit No.1 - Decided in favour of the revenue - ITA No. 290 of 2004 - - - Dated:- 24-9-2015 - Ajay Kumar Mittal And Ramendra Jain, JJ. For the Appellant : Mr Tajender K Joshi, Adv For the Respondents : Mr Anand Chhibbar, Sr Adv. with Ms Riya Bansal, Adv ORDER Ajay Kumar Mittal, J. .....

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..... vide order dated 16.3.1994, Annexure A.1. Aggrieved by the order, the assessee filed appeal before the Commissioner of Income Tax (Appeals) [CIT(A)]. Vide order dated 30.12.1994, Annexure A.II, the CIT(A) partly allowed the appeal. The revenue went in appeal before the Tribunal. Vide order dated 8.3.2002, Annexure A.III, the Tribunal dismissed the appeal. Hence the instant appeal by the revenue. 3. We have heard learned counsel for the parties. 4. Learned counsel for the revenue relied upon judgment of this Court in Bajaj Motors P.Limited vs. Commissioner of Income Tax, (2012) 347 ITR 472 to submit that the issue stands concluded in favour of the revenue and against the assessee. In Bajaj Motors P. Limited's case (supra), identic .....

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..... be worked out with reference to total income after excluding the loss therefrom as provided under Section 80AB read with Sections 80A(2) and 80B(5).Reliance has been placed upon the following judgments:- (i) Distributors (Baroda) P. Ltd. Vs. Union of India (1985) 155 ITR 120 (SC);(ii) H.H.Sir Rama Varma Vs. Commission of Income-Tax (1994) 205 ITR 433 (SC);(iii) Commissioner of Income-Tax Vs. Macmillan Co.of India Ltd. (2000) 243 ITR 403 (Madras);(iv) Commissioner of Income-Tax Vs. Chemical and Metallurgical Design Co. Ltd. (2001) 247 ITR 749 ITA No.290 of 2004 4 (Delhi); (v) Commissioner of Income -Tax Vs. Nima Specific Family Trust (2001) 248 ITR 29(Bombay); and (vi) Synco Industries Ltd. Vs. Assessing Officer of Income-Tax and others .....

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..... ection applies, there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, a deduction from such profits and gains of an amount equal to twenty per cent thereof: Provided that in the case of an assessee, being a company, the provisions of this sub-section shall have effect in relation to profits and gains derived from an industrial undertaking or a ship or the business of a hotel as if for the words twenty per cent , the words twenty five per cent had been substituted. 8. It is clear from the above provisions that component on which deduction is permissible under Section 80-I is gross total income which is defined in Section 80B(5) and is also refer .....

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..... nt to which deductions are tobe permitted under several sections in Chapter VIA excluding section 80M. Learned counsel also referred to certain other decisions which it is unnecessary to refer to, having regard to the law laid down in the case of H.H.Sir Rama Varma V CIT (1994) 205 ITR 433(SC). We may also notice here the judgment of the Constitution Bench of the Apex Court in the case of Distributors (Baroda) P. Ltd. Vs. Union of India (1985)155 ITR 120 in which the Court while upholding the constitutional validity of section 80AA also in Chapter VIA of the Income-tax Act, held that section 80AA is merely declaratory of the law as it always was since April 1, 1968. Section 80AB similarly must be held to be declaratory of the law as it alwa .....

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