2016 (7) TMI 409

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..... 85 of 2012 (Assessment Year 1998-99) have arisen from common judgment dated 28.07.2006 passed by Income Tax Appellate Tribunal, Lucknow Bench 'A' Lucknow in I.T.A. No. 190/LUC/2006 and I.T.A. No. 760//LUC/2001 and have been filed by assessee. 3. Though appeals were admitted on the questions of law framed therein which are five in number but in substance we find that only question up for consideration is; 'while computing deduction under Section 80-IA of Income Tax Act, 1961 (hereinafter referred to as 'Act 1961'), Assessing Authority has to calculate income of individual undertakings of assessee on the basis of unabsorbed business loss etc. in respect of each individual unit or it should be collectively'. 4. Counse .....

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..... ly to be considered for the purposes of the deduction. However, for the computation of the income derived by the industrial undertaking, the matter has been remanded back to the Assessing Officer. The Tribunal by the impugned order has upheld the view of the Commissioner of Income Tax (Appeals). We have considered the facts and circumstances of the present case and the law laid down by the Apex Court and the decision of the Delhi High Court referred herein above. It is not the case of the assessing authority that the gross income of the Company was nil. From perusal of the income disclosed to all the three units it appears that the gross income was not nil and, therefore, the assessee was eligible to claim the deduction under Sections 80- .....

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..... he deduction, the loss sustained in one of the units, cannot be taken into account because sub-section (6) of the Act contemplates that only the profits shall be taken into account as if it was the only source of income. Therefore from the decision of the Apex Court, two principle of laws emerges- one for the purposes of computation of gross total income the losses of other units are to be taken into account but for the purposes of calculating the deduction of industrial undertaking, the loss sustained in another unit cannot be taken into account and only the profit shall be taken into account as if it was the only source of income of that unit. In this view of the matter, we are of the view that there is no error in the order of the Tribun .....

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