2017 (6) TMI 1125

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.... in the circumstances of the case and in law, the Tribunal is right in holding that the respondent company was eligible for deduction u/s 80IA of the I.T. Act, 1961. (ii) Whether on the facts and in the circumstances of the case and in law, the Tribunal was correct in its interpretation of Section 80IA(5) of the I.T. Act, 1961 that unabsorbed depreciation of the eligible units need not be necessarily set off from the profits of the same units, but could be set off from other noneligible units as well. (iii) Whether on the facts and in the circumstances of the case and in law, the Tribunal was correct in its interpretation considering the fact that Section 80IA(5) of the I.T. Act, 1961 points out that the eligible unit be c....

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....r and allowing the deduction of the entire profits under Section 80IA(5) of the Act. 5. The learned Senior Counsel for the respondent supports the judgment and submits that the issue involved in the present matter is concluded by the decision of this Court in the present assessee's case in Income Tax Appeal No.2485 of 2013 under judgment dated 7th May, 2015. The said judgment of this Court is further confirmed by the Apex Court in Civil Appeal No.14703 of 2015, decided on 23rd September, 2016. The learned Senior Counsel further submits that the Madras High Court in a case of Velayudhaswamy Spinning Mills P. Ltd. and Sudan Spinning Mills (P) Ltd. Vs. Assistant Commissioner of Income Tax, (2012) 340 ITR 477 has concluded the issue and ....

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....t disputed that the assessee is entitled for deduction of the profits and gains for the period of 10 consecutive years beginning with initial assessment year. It is further not disputed that the initial assessment year of the assessee's unit is 200910, though it started functioning from the year 200506. The losses of the years 200506 to 200809 were absorbed during the relevant years and no losses were carried forward. The only question of debate before the Tribunal was whether the profit earned during the Assessment Year 200910 would be entitled for deduction under Section 80IA(5) of the Act without deducting the losses, which were absorbed in the earlier years. 8. The said issue is now no longer resintegra in view of the judgment of....