2015 (10) TMI 243

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.... the Appellant's case, the learned CIT(A) has grossly erred in dismissing appeal holding that there is no infirmity in the order of Assessing Officer. He ought to have held that deduction u/ss.80HH & 80I should be allowed before setting off of loss of another division." 3. Facts of the case are in a narrow campus. This appears to be third round of litigation between the parties up to the tribunal. The assessee claims section 80HHC and 80I deductions without adjusting losses of its other divisions. The Assessing Officer quoted case law of hon'ble apex court in Synco Industries vs. Assessing Officer [2008] 299 ITR 444 (SC) and amendment in section 80A by the Finance Act, 2009 for observing that its gross income is to be computed afte....

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.... to the amendment u/s.80A of I. T. Act which is amended by Finance Act, 2009. In this respect, our humble submissions is as under :- A). Deduction u/ss. 80HH and 80I in respect of profits of eligible industrial undertaking should be allowed before setting off of the loss of Toilet Soap division. Deduction u/ss. 80HH and 80I refers to the profit derived from Industrial Undertaking. Relevant portion of section 80HH and 80I is as under :- 80HH. "(1) where the gross total income of an assessee includes any profits and gains derived from the industrial undertaking, or the business of a hotel, to which this section applies, there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income....

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....ucting therefrom the losses in the alloy steel manufacture." C) Decision of Hon'ble Supreme Court in the case of Synco Industries Ltd (supra) does not overrule the decision of Hon'ble Supreme Court in the case of Canara Workshop P. Ltd. In fact, Hon'ble Ahmedabad Tribunal in the case of Goldmine Shares and Finance (P) Ltd. reported in 113 ITD 209 has interpreted the decision of Hon'ble Supreme Court in the case of Canara Workshop. Ltd. and after detailed discussion Hon'ble Tribunal held that deduction u/s.80l should be allowed on the profits of the undertaking without setting off of loss of another undertaking. The gist of the said decision is enclosed Annexure 'H" Hence, in the circumstances, it is submitted tha....

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....ars, before allowing deduction under Chapter VI-A and if the resultant income is NIL, then the assessee can not claim deduction u/s. VI-A of the Income-tax Act. For the sake of brevity the concluding para is reproduced as under :- "The proposition of law, emerging from the above discussion is that the gross total income of the assessee has first got to be determined after adjusting losses etc., and if the gross total income of the assessee is "NIL" the assessee would not be entitled to deductions under Chapter VI-A of the Act." The Honble Supreme Court has discussed provisions of section 80I(6) and 80IA also but those discussions were made in reference to the scope of section 80IA vis-a-vis sections 80A(2) and 80B(5). The concluding par....