TaxTMI 
TaxTMI 
2014 (4) TMI 483
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....itted on the following substantial question of law: "Whether in the facts and in the circumstances of the case, the Tribunal was right in holding that the deduction under Section 80IB should be allowed without setting off the losses of other units?" 3. The assessee is engaged in the business of process and sale of Barytes minerals by establishing 12 units located at different places. Two of such units are located in Balanagar, Mahboobnagar District, Andhra Pradesh State which has been notified under Section 80IB(5) of the Income Tax Act, 1961 [the Act] as industrially backward area Category 'B' vide Notification S.O.440E dated 15.06.1999. The assessee claimed deduction under Section 80IB of the Act. The assessee also claimed r....
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.... be restricted to the gross total income. In other words, the Assessing Officer held that deduction under Chapter VIA should be allowed only against such portion of the income, which forms part of the gross total income and if there are more than one "eligible unit", the balance income available should be divided among the units proportionate to the sales in each unit. 4. Aggrieved by the finding given by the Assessing Officer, the assessee preferred appeal before the Commissioner of Income Tax Appeals-III contending that in view of Sub Section 5 to Section 80IB and Sub Section 13 to Section 80IB, the first of the "eligible business" was eligible for deduction at 30% of the profits and gains derived as it had commenced its operation on 1....
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....ssing Officer had not referred to any particular item of expenditure, which was disproportionately allocated and no material or evidence is brought on record by the Assessing Officer to support his conclusion. The First Appellate Authority recorded the concessions made on behalf of the assessee that expenses, which were not allocated were Directors remuneration and those expenses are required to be allocated before arriving at profits and gains of the "eligible business" for the purposes of determination of the sum deductible under Sub Section 5 to Section 80IB of the Act. Therefore, the Assessing Officer was directed to re-determine the eligible deduction under Section 80IB (5) of the Act after apportioning the expenditure incurred under t....
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....ustrial undertakings located in industrially backward Districts are entitled to deduction in terms of Sub Section (13) to Section 80IB of the Act. In this regard, learned counsel referred to the findings/observations made by the First Appellate Authority as well as the Tribunal and sought to sustain the order passed by the Tribunal. 8. We have considered the submissions made on either side and perused the materials placed on record. 9. After perusing the facts placed before the Assessing Authority, First Appellate Authority as well as the Tribunal, it is to be pointed out that the question of eligibility to the assessee for deduction under Sub Section (13) to Section 80-IB r/w Sub-Section (5) of Section 80IB of the Act is not in dispu....