TMI Blog2007 (2) TMI 149X X X X Extracts X X X X X X X X Extracts X X X X ..... ome Tax Appellate Tribunal for assessment year 1997-98, whereas appeal No.186/06 pertains to the order dated 29th March, 2005 for the assessment year 1998-99 passed by the Income Tax Appellate Tribunal. 3. The brief facts leading to the filing of these appeals are:- ITA No.977 of 2005 4. The Assessee a Private Limited Company is engaged in business of fabrication and supply of equipments and technical items. This business is being carried out in units situated at Kalamb, Himachal Pradesh which is a notified backward area. Other business units of the Assessee are situated in Delhi and Noida. The profit derived from the Kalamb unit was eligible for deduction under Section 80-IA of the Income Tax Act, 1961 (for short the Act) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is justified in allowing the deduction under Section 80-IA of the Act at ₹ 18,03,143/- as against ₹ 4,53,398/- allowed by the Assessing Officer for the assessment year 1998-99. The Income Tax Appellate Tribunal, following its order dated 20 th January, 2005 in ITA No.758/Del/2001 for the assessment year 1997-98, dismissed the appeal of the Revenue. 9. It has been argued by the learned counsel for the Appellant that as per provision of Section 80-IA of the Act where gross total income of the Assessee includes any profits and gains derived from any eligible business of an industrial undertaking, the whole of the profit of such eligible business is to be allowed as deduction under Section 80-IA of the Act and the interest ear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nefit. It is also not in dispute that profits derived by the Assessee from Kalamb Unit amounted to ₹ 20,92,221/- whereas the other units at Delhi and Noida resulted in the loss of ₹ 9,11,270/- The Provision of sub-section 7 of Section 80-IA of the Act which is relevant in this case, is reproduced below:- (7)Notwithstanding anything contained in any other provision of this Act, the profits and gains of an eligible business to which the provisions of sub-section (1) apply shall, for the purpose of determining the quantum of deduction under sub-section (5) for the assessment year immediately succeeding the initial assessment year or any subsequent assessment year, be computed as if such eligible business were the only source of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unit of the Assessee eligible for deduction under Section 80-IA of the Act is to be treated as an independent unit and the same is to be treated as the only source of income for Assessee for the purpose of computing deduction under Section 80-IA of the Act. The deduction claimed by the Assessee under Section 80-IA of the Act, thus, is in accordance with the said provisions and as such we find that there is no infirmity in the impugned order passed by the Income Tax Appellate Tribunal. 16. The Judgments cited by learned counsel for Appellant are not applicable for the facts of the present case. 17. This being the position, we are of the opinion that there is no substantial question of law that arises for our consideration and we do ..... X X X X Extracts X X X X X X X X Extracts X X X X
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