https://www.taxtmi.com/caselaws?id=255631 Section 80-IA deduction cannot be reduced by notionally bringing forward earlier-year losses that were already absorbed against other income. The Madras HC followed the view that Chapter VI-A deductions under Section 80-IA are profit-linked incentives and that the deeming fiction in sub-section (5) is confined to computing eligible business profits as if that business were the only source of income for the relevant period. It does not permit reopening or re-carrying forward losses of prior years that have already been set off. The Court also accepted that the language of Sections 80-I and 80-IA does not require such absorbed losses to be notionally revived for deduction computation. en-us Mon, 12 Jan 2015 00:00:00 +0530 Fri, 08 May 2015 18:33:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=255631 Section 80-IA deduction cannot be reduced by notionally bringing forward earlier-year losses that were already absorbed against other income. The Madras HC followed the view that Chapter VI-A deductions under Section 80-IA are profit-linked incentives and that the deeming fiction in sub-section (5) is confined to computing eligible business profits as if that business were the only source of income for the relevant period. It does not permit reopening or re-carrying forward losses of prior years that have already been set off. The Court also accepted that the language of Sections 80-I and 80-IA does not require such absorbed losses to be notionally revived for deduction computation. Case-Laws Income Tax Mon, 12 Jan 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=255631