TMI Blog1984 (1) TMI 338X X X X Extracts X X X X X X X X Extracts X X X X ..... ase of Cambay electric Supply Industrial Company Ltd. 1978 CTR (SC) 50: (1978) 113 ITR 84(SC) to mean that the loss incurred in non-priority industry could not be set off against the profits and gains of a priority industry run by the same assessee even according to the steps set out for such working at Para 91 of the report ? 2. Whether on the fact and in the circumstances of the case, the Tribunal was right in confirming the order of the CIT(A) directing that the deduction at 8 per cent should be allowed on the profit of the priority industry even though for the years under consideration the gross total income as computed under s. 80-B(5) is nil or negative ? The Tribunal by its order dt. 29th Dec., 1981 rejected the reference ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... equal to eight per cent thereof, in computing the total income of the company. xx xx xx xx xx Sec. 80-J is also similarly worded. The first part of these two sections refers to the gross total income and its sets out that when the gross total income of the company includes any profits and gains attributable to any priority industry, the deductions in accordance with that action is required to be given from such profits and gains while computing the total income of the company. There is a similar provision under s. 80-J. The words such profits and gains clearly refer to the profits and gains attributable to the priority industry in question. This section cannot be interpreted to treat the profits and losses of different un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the priority or new undertaking as the case may be, and not in respect of the income computed after making the deductions provided under the Act and after adjusting the profits or losses of different units against one another. 4. Our attention was drawn to a decision of the supreme Court in the case of Cambay Electric Supply Industrial Co. Ltd. vs. CIT. Gujarat-II 1978 CTR (SC) 50: (1978) 113 ITR 84(SC) which deals with the provisions of s. 80E of the IT Act. Sec. 80E is worded differently from ss. 80-I, 80-J and 80M. Opening words of this section are where the total income (as computed in accordance with the other provisions of this Act) includes any profit and gains attributable the business. Those words are very different from t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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