TMI Blog2017 (6) TMI 1125X X X X Extracts X X X X X X X X Extracts X X X X ..... earlier years which were already set off against the income of assessee, can be looked into. - Income Tax Appeal No. 707 of 2014 - - - Dated:- 14-6-2017 - S. V. Gangapurwala And G. S. Kulkarni, JJ. Mr. Arvind Pinto for the appellant Mr. J.D. Mistri, Senior Counsel a/w Mr. Atul K Jasani, Mr. Madhur Agarwal for the respondent ORDER P. C. 1. This present appeal relates to Assessment Year 2009-10. The Revenue has filed the appeal against the order of the Tribunal thereby partly allowing the appeal filed by the assessee. 2. The Revenue has framed the following questions for our consideration : (i) Whether on the facts and in the circumstances of the case and in law, the Tribunal is right in holding that the res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... though already absorbed against the other sources, they are once again notionally brought forward and set off against the profits of the other units to compute eligible deduction. 4. In view of the same, the profit from the eligible business for the purpose of determination of the quantum of deduction under Section 80IA of the Act, has to be computed after deduction of the notionally brought forward losses and depreciation of eligible business, even though they have been allowed to be set off against other income in the earlier years. The learned Counsel submits that in the wake of such position, the Tribunal erred in passing the impugned order and allowing the deduction of the entire profits under Section 80IA(5) of the Act. 5. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t year, be computed as if such eligible business were the only source of income of the assessee during the previous year relevant to the initial assessment year and to every subsequent assessment year up to and including the assessment year for which the determination is to be made. 6. With the assistance of the learned Counsel for the respective parties, we have considered the submissions and also have gone through the order of the Tribunal so also the judgments relied by the respective Counsel. 7. It is not disputed that the respondent assessee is entitled for deduction of the profits and gains as contemplated u/s 80IA. It is also not disputed that the assessee is entitled for deduction of the profits and gains for the period of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er income of the assessee and the set off against the current income of the eligible business. Once the set off is taken place in earlier year against the other income of the assessee, the Revenue cannot rework the set off amount and bring it notionally. A fiction created in subsection does not contemplates to bring set off amount notionally. The fiction is created only for the limited purpose and the same cannot be extended beyond the purpose for which it is created. 9. The said judgment of the Madras High Court has been confirmed by the Apex Court, as such has attained finality. Even in the assessee's own case for the previous year, the losses were set off in the relevant years. The Revenue had challenged the said action before ..... X X X X Extracts X X X X X X X X Extracts X X X X
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