2012 (8) TMI 463

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ithout the deduction of the losses incurred by the Delhi units in the circumstances of the case?" 2. The Assessee had owned three units; two of them located in Delhi and the third at Baddi, Himachal Pradesh. The latter was eligible for benefit under Section 80 IC of the Income Tax Act. For the relevant period i.e. AY 2006-07, the assessee declared a loss of Rs. 45,89,621/- in respect of its two Delhi units. In respect of the Baddi unit, it claimed deduction under Section-80IC on the computed profit of Rs. 86,76,687/-. The Assessing Officer adjusted the losses of the Delhi units against the profits of the Baddi unit and arrived at profit eligible for deduction under Section 80 IC at Rs. 40,44,824/- The assessee carried the matter in appea....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....those units and industrial undertaking which have a profit or gain. In sub-section (7) of section 80IC, it has been provided that provisions contained in sub-section (5) and subsections (7) to (12) of section 80-IA shall, so far as may be, applied to the eligible undertaking or enterprises under this section, meaning thereby that same provision would be applicable in section 80-IC of the Act. Hon'ble Delhi High Court in the case of Dewan Kraft Systems (P) Ltd. and Sona Koyo (supra) has held that each unit will be considered independently. In view of the above, we are of the opinion that Learned First Appellate Authority has rightly applied the ratio of Hon'ble Delhi High Court and has rightly directed the Assessing Officer not to adjust the....