2016 (9) TMI 994

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....that the ld. CIT(A) has erred in holding that the claim under section 80IB of the Income Tax Act, 1961 ["Act" in short] is to be granted without setting off of the losses against the profits of the Aluminium Paste Unit. 2. Brief facts of the case are that the assessee is engaged in the business of manufacture and sale of metallic powders. The assessee filed its return of income on 29.09.2011 admitting total income of Rs..18,18,61,050/-. The return filed by the assessee was processed under section 143(1) of the Act on 10.08.2012. Subsequently, the case of the assessee was selected for scrutiny and notice under section 143(2) of the Act was issued on 31.07.2012. In response thereto, the assessee filed all the details. After verifying the d....

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....es, perused the materials on record and gone through the orders of authorities below. We have also perused the copy of the order of the Tribunal in assessee's own case for the assessment year 2010-11 in I.T.A. No. 1143/Mds/2014 dated 31.03.2016, wherein, by following the decision of the Tribunal in assessee's own case for the assessment years 2002-03, 2003-04 & 2005-06 to 2008-09 in I.T.A. Nos. 782 to 787/Mds/2012 dated 21.02.2013, the Tribunal has sustained the order of the ld. CIT(A) by dismissing the ground raised by the Revenue. Vide order dated 21.02.2013 in assessee's own case, by considering various decisions of the Hon'ble Jurisdictional High Court, the Tribunal has observed and held as under: "7. We have perused the orders....

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.... arriving at such profit, income from various units had to be calculated and if one of the units was running at a loss, gross total income had to be arrived considering such loss also. Ultimately, if the gross total income was a loss, claim for deduction was to be rejected. Sections 80HHC or 80-IA or 80-IB for that matter, are all controlled by Section 80AB of the Act. "Gross total income" means gross total income computed as per the provisions of the Act. This was clearly reiterated by Hon'ble Apex Court in the case of Synco Industries Ltd. (supra). Hon'ble Apex Court held that gross total income had to be arrived at after making deductions as per appropriate computation provisions, including income under Sections 60 to 64, adjustm....

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....62) and CIT v. M. Gani And Co. (301 ITR 381), each of the unit had to be separately considered for working out deduction under Section 80-IA or 80-IB or 80HHC of the Act, once separate accounts were being maintained and there was no interlacing and interdependence. In the given case before us, assessee had positive gross total income. Therefore, each undertaking had to be considered separately for working out deduction under Section 80-IA of the Act, since the gross total income was positive. We are of the opinion that CIT(Appeals) was justified in giving such directions." 7. Before us, the ld. DR relied on the decision in the case of Synco Industries Ltd. v. Assessing Officer (supra), wherein the Hon'ble Supreme Court has held that the ....