https://www.taxtmi.com/caselaws?id=349268 While computing deduction under Section 80-IA of the Income-tax Act, depreciation under Section 32 must be reduced from eligible business profits even if the assessee did not claim it in the return or computation of income. Section 80-IA is a self-contained profit-linked deduction provision and requires profits to be determined after allowing all deductions under Sections 30 to 43D, including depreciation. The optional treatment of depreciation under Mahendra Mills does not govern this computation, because allowing its omission would improperly inflate eligible profits by deferring the allowance to a later year. The result was that depreciation had to be taken into account and the appeals failed. en-us Mon, 09 Oct 2017 00:00:00 +0530 Sat, 18 Nov 2017 14:51:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=349268 While computing deduction under Section 80-IA of the Income-tax Act, depreciation under Section 32 must be reduced from eligible business profits even if the assessee did not claim it in the return or computation of income. Section 80-IA is a self-contained profit-linked deduction provision and requires profits to be determined after allowing all deductions under Sections 30 to 43D, including depreciation. The optional treatment of depreciation under Mahendra Mills does not govern this computation, because allowing its omission would improperly inflate eligible profits by deferring the allowance to a later year. The result was that depreciation had to be taken into account and the appeals failed. Case-Laws Income Tax Mon, 09 Oct 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=349268