2011 (4) TMI 1342

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....tion was filed by the assessee belatedly by 14 days. Assessee has filed a condonation petition and the justifications mentioned in the condonation petition being reasonable, the delay is condoned and Cross Objection is accepted. 3. First we take up the Revenue's appeal. The sole grievance raised by the Revenue is that the CIT(Appeals) held that assessee would be eligible for claiming deduction under Section 80-IA of Income-tax Act, 1961 (hereinafter called "the Act"). 4. Assessee engaged in the business of manufacturing of carburetors and fuel pumps, had filed a return for impugned assessment year wherein it had claimed deduction under Section 80- IA of the Act ₹ 85,35,842/-. The said claim related to unit set up by the assessee for....

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....ly assailing the order of CIT(Appeals), submitted that notional depreciation had to be set off before working out relief under Section 80-IB of the Act. 7. Per contra, learned A.R. submitted that the issue was no more res integra. He relied on the decision of Hon'ble jurisdictional High Court in the case of Velayudhaswamy Spinning Mills Ltd. (supra). 8. We have perused the orders and heard the rival contentions. Hon'ble jurisdictional High Court in the case of Velayudhaswamy Spinning Mills Ltd. (supra) had clearly held that depreciation of an eligible unit which has set off against other income of years prior to initial assessment year, could not be notionally carried forward and set off against income of eligible unit for the ini....