TaxTMI 
TaxTMI 
2015 (1) TMI 823
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.... that the losses incurred by the industrial undertaking claiming deduction under Section 80 I, which has been already set off against the profits of the other industrial undertaking should be notionally carried forward and set off against profit generated by the industrial undertaking during the relevant assessment year for determining the deduction under Section 80 I? 2. Whether on the facts and circumstances of the case, the Tribunal ought to have held that the issue of restricting the relief under Section 80I was debatable and hence cannot be carried out in an order of rectification under Section 154 particularly when a concurrent bench of the same Tribunal has held the issue in favour of the assessee? 3. Whether on the facts and c....
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....ssessing Officer withdrew the deduction for the assessment year 1993-94 also. 3. Aggrieved by the assessment orders, the assessee filed appeals before the Commissioner of Income Tax (Appeals), who dismissed the appeals, thereby confirmed the order of the Assessing Officer. 4. As against the said orders of the Commissioner of Income Tax (Appeals), the assessee filed further appeals before the Income Tax Appellate Tribunal contending that notional carry forward losses should not be set off in computing the deduction under Section 80I of the Income Tax Act. Before the Tribunal, the assessee relied on the decision of the Tribunal in the case of TTK Pharma Limited in ITA No. 2698 of 1994. 5. The Tribunal, without following its own decis....
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....wing deduction under Section 80 I, the brought forward losses and unabsorbed depreciation etc., of the new industrial undertaking need not be taken into consideration, once they have been set off against other sources of income, especially in view of the clear provisions of sub-section 6 of Section 80I, the application of which is mandatory. 11. The Division Bench of this Court relied upon the decision of the Supreme Court in the case of Synco Industries Ltd. Vs. Assessing Officer (Income Tax) and Another reported in (2008) 299 ITR 444, came to the conclusion that once the depreciation allowance and development rebate for the past assessment years were fully set off against the total income of the assessee for those assessment years, the....
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....ates that where the gross total income includes any profits and gains derived from an industrial undertaking to which Section 80-I applies then there shall be a deduction from such profits and gains of an amount equal to 20 per cent. The words "includes any profits" used by the Legislature in section 80-I(1) are very important which indicate that the gross total income of the assessee shall include profits from a priority undertaking. While computing the quantum of deduction under section 80-I(6), the Assessing Officer, no doubt, has to treat the profits derived from an industrial undertaking as the only source of income in order to arrive at the deductions under Chapter VI-A. However, this court finds that the non obstinate clause appearin....