TaxTMI 
TaxTMI 
2015 (1) TMI 881
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....ming the questions urged. The order permitted the withdrawal of the appeal, ITA Nos.1319-21/2009 and permitted the revenue to amend the questions of law. It is in these circumstances that the present common appeal has been filed. 3. The revenue urges the following questions of law in support of the present appeal, stating that they are substantial questions which require consideration: "(a) Whether the ITAT erred in law and on merits in upholding the order of CIT(A) directing the AO to obtain figures of sales (notional) from toner, developer and photoreceptors unit to other units as reduced by the actual figures of sales and to further adjust the amount by the profits of toner, developer and photoreceptors unit for the purpose of comp....
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.... question of law suggested above and or formulate new/additional questions of law." 4. The Court has considered the submissions and is of the opinion that having regard to the judgment of the Allahabad High Court in ITA 30/2001 dated 15.04.2010 (Commissioner of Income Tax v. M/s. Modi Xerox Ltd), question nos.(c), (d) and (e) do not arise. The finding of the Allahabad High Court in this regard for the assessment year 1991-92 is as follows: "There were three separate units for the aforesaid activities. It appears that the two units, viz. unit manufacturing xerographic equipment and unit manufacturing toner, developer and photoreceptors, were profit making units and the third unit, viz. servicing and trading activities, has suffered los....
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....e law laid down by the Apex Court and the decision of the Delhi High Court referred herein above. It is not the case of the assessing authority that the gross income of the Company was nil. From perusal of the income disclosed to all the three units it appears that the gross income was not nil and, therefore, the assessee was eligible to claim the deduction under Sections 80-HH and 80-I of the Act. After becoming eligible to claim the deduction, the question for consideration is that whether deduction is eligible to the income derived to each industrial undertaking independently or on a consideration of the losses suffered by the service unit. Sections 80-HH and 80-I of the Act contemplate the deduction from the income derived by the undert....
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....r units are to be taken into account but for the purposes of calculating the deduction of industrial undertaking, the loss sustained in another unit cannot be taken into account and only the profit shall be taken into account as if it was the only source of income of that unit. In this view of the matter, we are of the view that there is no error in the order of the Tribunal." 7. The present appeal pertains to assessment year 1994-95. Having regard to the fact that in respect of same assessee, the Allahabad High Court has ruled against the revenue, we are of the opinion that question nos. (b), (c), (d),(e) and (g) do not arise for consideration. 8. So far as question nos. (a)and (f), i.e. the issues arising out of interunit sales/tran....