1997 (11) TMI 36

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....e, the deduction under section 80HH has to be computed by taking a proportion of a gross profit from the new industrial undertaking in the backward area and should be given as a deduction from such gross income of the assessee similar to the deductions under other sections, viz., 30 to 43A, in computing the income from business under section 29 of the Income-tax Act, 1961 ?" The assessee is a company engaged in the manufacture and sale of industrial belts. The assessee, admittedly, is a newly established industrial undertaking set up in a backward area. The assessee, in the course of assessment proceedings for the assessment year 1979-80 disclosed the income from the business of manufacture and sale of industrial belts as Rs. 8,91,590 an....

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....rofit from business. 2. Set-off current losses. 3. Sections 80H, 80HH, 80HHA deductions, if any, if there is profit. 4. Current section 80J if there is profit/section 80-I deduction whichever lapses first. 5. Carried forward section 80J from profit if any for successive years. 6. Carried forward development rebate under section 33(2)(ii) for successive years. 7. Current development rebate under section 33(2)(ii). 8. Carried forward development allowance under section 33A(2)(ii) for successive years. 9. Current development allowance under section 33A(2)(i). 10. Carried forward investment allowance under section 32A(3)(i) for successive years. 11. Current investment allowance under section 32A(3)(i). 12, Carri....

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.... this court in T.C. Nos. 2121 to. 2124 of 1984, dated February 17, 1997---since reported in CIT v. Veeraraghava Textiles (P.) Ltd. [1998] 234 ITR 529 wherein this court has held that the assessee would be entitled to deduction under section 80J of the Act only after setting off the earlier losses carried forward or unabsorbed depreciation of the earlier years. This court also held that the Tribunal was not correct in holding that the deduction under Chapter VIA has to be allowed before deducting carried forward business losses or unabsorbed depreciation of the earlier years. Mr. Janarthana Raja, learned counsel for the assessee, however, submitted that other High Courts have diametrically taken an opposite view. For that, he placed relia....