TMI Blog2016 (9) TMI 1079X X X X Extracts X X X X X X X X Extracts X X X X ..... he Act, when the same is permitted under Section 80 IA (5) of the Act” - Held that:- Hon'ble Division Bench of this Court in Velayudhaswamy Spinning Mills Pvt. Ltd.,'s case (2010 (3) TMI 860 - Madras High Court ), held that once the losses and other deductions are set off against the income of the assessee in the previous year, it should not be re-opened again, for the purpose of computation of cu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e notional loss of depreciation which was set off against other income of earlier years prior to initial assessment year could not be carried forward to set off in the initial assessment year for the purpose of working out the deduction under Section 80 IA of the Act, when the same is permitted under Section 80 IA (5) of the Act 3. As regards substantial questions of law, are concerned, it is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt in Velayudhaswamy Spinning Mills Pvt. Ltd.,'s case (stated supra), held that once the losses and other deductions are set off against the income of the assessee in the previous year, it should not be re-opened again, for the purpose of computation of current year income, under Section 80-I and 80-IA of the Act. 5. Velayudhaswamy Spinning Mills Pvt. Ltd.,'s case (stated supra), has be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot be notionally brought forward and set off once again against the profit of the eligible business in determining the quantum of deduction under Section 80 IA. Respectfully following the Hon'ble Madras High Court's decision, this issue is decided in favour of the appellant. Accordingly, the AO is directed to re-work the deduction under Section 80 IA without setting off of losses on no ..... X X X X Extracts X X X X X X X X Extracts X X X X
|