TMI Blog1983 (10) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... the circumstances of the case, the assessee was entitled to deduction under section 80-I for the assessment year 1970-71 despite the fact that the total income for that assessment year was determined as 'nil' by reason of setting off the carried forward loss and unabsorbed depreciation of the earlier assessment years ? " The assessee is a private limited company incorporated on June 16, 1965, and is engaged in the manufacture and sale of bolts, nuts and screws for automobiles and for other machinery. During the accounting years ending with June 30, 1969, and June 30, 1970, it had installed new machinery of the Value of Rs. 1,86,189 and Rs. 2.22,369, respectively. It claimed development rebate in respect of such machinery at 35% thereof am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or both the assessment years under consideration. Thereupon, the Revenue preferred appeals to the Tribunal. Regarding the claim for allowance of development rebate at 35% on the value of the machinery installed during the relevant two previous years, the Tribunal noticed that a similar claim made by the assessee for the earlier assessment years has been upheld by its decision in ITA Nos. 2755 and 2756 of 1973-74, dated November 14, 1975. Following its own earlier decision, the Tribunal upheld the order of the Appellate Assistant Commissioner upholding the assessee's claim for allowance of development rebate at 35% of the value of the machinery installed during the relevant previous assessment years. Regarding the assessee's claim for deduct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disturbed either by the Appellate Assistant Commissioner or by the Tribunal. The Tribunal which proceeded on the basis that the total income determined is " nil ", however, held against the Revenue proceeding on the basis that the deduction contemplated under Chapter VI-A is independent and, therefore, even if there is no positive income, deduction contemplated under that Chapter has to be allowed. A similar question came up for consideration before this court in CIT v. Madras Motors (P.) Ltd. [1984] 150 ITR 150 (Mad) (T.C. No. 44 of 1977) and this court by its judgment dated August 19, 1983, held, relying upon the provisions of sections 80A and 80A(2) occurring in Chapter VI-A, that having regard to the limitations contained in section 80A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the reliefs under Chapter VI-A can be claimed. Having regard to the fact that "he gross total income computed in that case was a positive figure, this court did not go into the question as to the scope and effect of section 80A(2) which puts a limitation oil the reliefs to be granted under Chapter VI-A. As a matter of fact, in that case the Supreme Court has specifically referred to the, fact that any relief to be granted under Chapter VI-A should be subject to the limitation contained in section 80A(2). Therefore, the decision of this court in CIT v. Madras Motors (P.) Lid. [1984] 150 ITR 150 (Mad) (T. C. No. 44 of 1977) cannot be said to run counter to the decision of the Supreme Court in Cloth Traders (P.) Ltd. v. Addl. CIT [1979] 118 I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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