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2021 (9) TMI 357
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....g the disallowance u/s 14A to the dividend income. 2. The ld. CIT(A) erred in not considering that section 14A provides for expenditure incurred for earning exempt income. 3. The ld. CIT(A) erred in allowing deduction u/s 80IA on Gross total income instead of on business income." 3. The brief facts as taken from AY 2013-14 are that the assessee company filed its return of income for the AY 2013-14 on 30/11/2013 admitting Nil income after claiming deduction u/s 80IA amounting to Rs. 5,53,81,200/- and book profits u/s 115JB at Rs. 1,31,18,630/-. The case was selected for scrutiny and statutory notices were issued to the assessee. 3.1 During the course of assessment proceedings, the AO noticed from the profit & loss account that the assessee company had debited an amount of Rs. 68,75,000/- towards filing fees for increase of authorized capital. According to AO, this expenditure was towards the increase in share capital which is a balance sheet item and of enduring nature as such is in nature of capital expenditure and, hence, the said sum of Rs. 68,75,000/- added back to the income of the assessee. 3.2 Further, the AO noted that the Assessee company was in r....
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....er the heads "Income from house property", "Capital gains", and "Income from other sources", which are forming part of the gross total income of the assessee or to be restricted to income under the head "Profits and gains of business or profession". 2. In this regard, it is humbly submitted that the Hon'ble ITAT, B-bench, Hyderabad, with the same combination of Hon'ble Accountant Member and Judicial Member, in the assessee's/ respondent's own case for the AY 2011-12, vide order in ITA No. 1024/H/2017, dated 17-06-2021, has held that the assessee is not eligible to claim deduction u/s.80IA of the Act, from the income from house property. The relevant portion of the decision is reproduced below, for your kind reference: "2.1 In view of the above of our discussion, the assessee is not eligible to claim the deduction u/s 80IA of the Act. The legislature has clearly spelt out in the deduction provisions that which incomes are eligible to claim deduction u/s 80IA, and therefore, the assessee cannot go beyond the provisions and claim deduction u/s 80IA. The deduction provisions should be interpreted strictly and if there is any ambiguity, it goes to in favour of revenue.....
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.... Rs. 1 Profits and gains of business or profession (-) 22,70,87,917 2 Income from house property 15,49,369 3 Short Term Capital Gains 10,44,14,475 4 Income from other sources 17,65,05,274 5 Total income from various heads other than "Profits and gains of business or profession" (+) 28,24,69,118 6. However, while computing the total income, the assessee claimed set off of the loss under the head business of (-) Rs. 22,70,87,917/- against the income from other heads of (+) Rs. 28,24,69,118, and arrived at the gross total income of Rs. 5,53,81,200/- (28,24,69,118 - 22,70,87,917) before applying provisions of Chapter VIA of the Act. Further, the assessee has claimed deduction under Chapter VIA of the Act i.e., under section 80IA of the Act, towards profits from 4 power generating units, to the extent of Rs. 17,26,49,292/- and restricted the same to the extent of gross total income of Rs. 5,53,81,200/-. As such, the assessee has computed income from eligible business in respect of 4 power generating units by applying the provisions of section 80IA(5) of the Act to the extent of Rs. 17....
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....form of gross total income of Rs. 5,53,81,200/-. To put it other way, no part of the income derived from eligible power generating units is included in the gross total income of Rs. 5,53,81,200/- 9. Similarly, in terms of section 80IA(5) of the Act, the assessee is having taxable income derived from 4 power generating units aggregating to Rs. 17,26,49,292/- and the same is not subjected to tax implying that the income from eligible business is totally exempt from tax. Thus, the assessee need not to pay any taxes on Rs. 17,26,49,292/-, but at the same time the assessee cannot claim set off of such exempted income/profits against the gross total income. By doing so, what the assessee is actually claiming is deduction towards income admitted under other heads of income i.e., "Income from house property", "Capital gains", and "Income from other sources", in the guise of claiming deduction towards profits/income derived from eligible business, leading to double deduction, i.e., firstly, by way of total exemption from tax and secondly, by claiming deduction of the same amount against income from other heads of income. 10. On the other hand, as seen from the language of ....
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....e was held in favour of the assessee on the basis of fulfilling certain conditions, which are extracted below; 1. In respect of profits derived from eligible business, the 1st condition to be fulfilled for claiming deduction u/s.80IA of the Act, is-there should be positive income under the head "Profit and gains of business or profession". (Please refer para no.2 at page no.3 and para no.12 at page no.13 & 14 of the Supreme Court Order). 2. Secondly, the quantum of income derived from eligible business and allowable deduction u/s.80IA(1) of the Act, as the case may be, shall be computed by applying the provisions of sub-section (5) of section 80IA of the Act, wherein such amount of deduction shall be computed treating the eligible business as the only source of income. However, the Hon'ble Supreme Court held that sub-section (5) cannot be pressed into service for reading a limitation of the deduction under sub-section (1) only to business income. (Please refer para no.15 at page no.17 & 18). 3. Thirdly, after computing the income derived from the eligible business and quantum of deduction u/s.80IA(5) of the Act, the assessee is eligible to claim such amou....
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....i.e., from 4 different power generating units aggregating to Rs. 17,26,49,292/-, but the income under the head "Profits and gains of business or profession" consisting of profit/loss from all the eligible units of the assessee-company is worked out to be loss of (-) Rs. 22,70,87,917/-, the assessee cannot claim set off of profit/income from eligible units against the gross total income consisting of income disclosed under other heads. 19. In view of this, as per the law laid down by the Hon'ble Supreme Court in the case of Reliance Energy Ltd (supra), without there being any positive income under the head "Profits and gains of business or profession", before allowing deduction under Chapter VIA of the Act, the assessee is not eligible to claim deduction of income separately computed in respect of eligible units. This particular proposition of law was already laid down by the Hon'ble Supreme Court in IPCA Laboratory Ltd. vs Deputy Commissioner of Income-tax [2004] 135 Taxman 594 (SC). The Head Note of the judgment as extracted from ITR is given below, for kind reference of the Hon'ble Bench "WORDS AND PHRASES - "PROFIT", MEANING OF. Undoubtedly section 80HHC has be....
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....pter) shall alone be deemed to be the amount of income of that nature which is derived or received by the assessee and which is included in his gross total income." Section 80B(5) is also relevant. Section 80B(5) provides that "gross total income" means total income computed in accordance with the provisions of the Income-tax Act. 12. Section 80AB is also in Chapter VI-A. It starts with the words "where any deduction is required to be made or allowed under any section of this Chapter". This would include section 80HHC. Section 80AB further provides that "notwithstanding anything contained in that section". Thus section 80AB has been given an overriding effect over all other sections in Chapter VIA. Section 80HHC does not provide that its provisions are to prevail over section 80AB or over any other provision of the Act. Section 80HHC would thus be governed by section 80AB. Decisions of the Bombay High Court and the Kerala High Court to the contrary cannot be said to be the correct law. Section 80AB makes it clear that the computation of income has to be in accordance with the provisions of the Act. If the income has to be computed in accordance with the p....
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....ome of the assessee". 24. In normal course, if the gross total income of an assessee does not include any income derived from the eligible business, then the assessee need not be subjected to tax at all. On the other hand, by virtue of section 80IA of the Act, even if the gross total income includes any income derived from the eligible business, the assessee need not pay taxes on the same and for that purpose it is contemplated in the Act that, if such income is included in the gross total income, then the same shall be excluded or deducted from the gross total income. 25. Thus, it is clearly implied that the intention of legislature is not to tax income derived from eligible business in a particular F.Y./A.Y., and such incentive is extended for a period of 10 Assessment Years. Further, the procedure as to how to allow such incentive/deduction towards the income derived from the eligible business is embedded in the machinery provisions of section 80IA of the Act. 26. This tax incentive/ tax-holiday was initially allowed on certain percentage of profits/income derived from eligible business, i.e., for example 20% of the profits/income. In view of this, in ....
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....tuation wherein the assessee would avail double deduction in respect of same income or weighted deduction at the rate of 200% of the eligible income, i.e. firstly, without paying any tax on the business income of Rs. 1 crore and, secondly, by claiming deduction of the same from house property income, which is not at all the intention of legislature. 29. However, in case of investment linked incentives/tax-holiday provisions such as 35 AC of the Act, the assessee can claim the entire amount of capital expenditure against the gross total income of the assessee, and in case of insufficient gross total income, the same can be carried-forward to subsequent AYs and claimed as deduction. As such, there is a stark difference between profit linked incentives as contained in Chapter VIA of the Act and investment linked one as contained under Chapter IV of the Act. It is humbly requested that the same may considered while deciding the issue, keeping in view the decision of the Hon'ble SC in host of decisions (supra). AY 2014-15 / ITA No. 165/H/2020: 30. The facts and circumstances involved in the case of respondent for the AY 2014-15 are identical. To be precise, fo....
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....The ld. AR of the assessee also filed written synopsis, which is as under: In this regard the Assessee submits as under: The Assessee is engaged in the business of generation & sale of power and is eligible to claim deduction u/s. 80-IA of the Income-tax Act, 1961 ('Act'). For all the captioned years, the Ld. AO made disallowance of expenses u/s. 14A of the Act and also restricted the claim of deduction u/s 80-IA ONLY to the extent of Income under the head "Profits and gains of business or profession" ('PGBP'), instead of restricting the same against Gross Total Income ('GTI') of the Assessee. On appeal, Ld. CIT(A) gave relief on addition made u/s. 14A by restricting the disallowance to the extent of exempt income by relying on the Hon'ble ITAT order in Assessee's own case for the earlier year. Further, Ld. CIT(A) provided relief on section 80-IA by allowing the deduction to the extent of GTI and not restricting it ONLY against Income from Business or Profession. Aggrieved by the order of Ld. CIT(A), Department is into appeal before Hon'ble ITAT. During the course of hearing on 23 June 2021 our authorized representative (AR) argued that: a) 14A i....
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....4 Form 10CCB for eligible units claiming 80-IA deduction (refer Page 40 to 55 of PB) 45 to 60 2016-17 Unit/Segment wise computation of income 61 Profit and Loss Account (refer Page 3 of PB) 62 Computation of Income (refer Page 31-32 of PB) 63 to 64 Form 10CCB for eligible units claiming 80-IA deduction (refer Page 35 to 46 of PB) 65 to 76 The Assessee submits that the deduction computed u/s. 80-IA of the Act should be allowed in totality from the GTI and should not to be restricted ONLY to Income from Business or Profession. In support of the said contention, reliance was placed on the following decisions at the time of hearing: a. CIT vs. Reliance Energy Ltd. [Civil Appeal No. 1327 of 2021 (SC)] [Page 1 to 18 of compilation of judgements ('COJ')] b. NSL Renewable Power Private Limited vs. DCIT (AY 2010-11) (ITA No. 2146/Hyd/2017) (Page 19 to 32 of COJ) (Assessee's own case) c. NSL Renewable Power Private Limited vs. DCIT (AY 2012-13) (ITA No. 988/Hyd/2017) (Page 33 to 42 of COJ) (Assessee's own case) d. Meera Cotton & Synthetic Mills (P) Ltd vs. ACIT (2009) 29 SOT 177 (Mum.Trib.) B. Rebuttal to ....
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....R's reliance on AY 2011-12 order in Assessee's own case is completely misplaced and should be rejected in limine. 2. The Ld. DR brought out the facts of AY 2013-14 for the sake of reference and stated that the Assessee operates in 9 power generating units out of which 3 power generating units are declaring loss and 4 power generating units are declaring profits (refer to Page 4 of Ld. DR submissions). Ld. DR submitted that before applying the provisions of Chapter VIA and deduction u/s. 80-IA of the Act, the Appellant ought to set-off the losses of 3 power generating units against the profit of 4 units and that after such set-off of inter-unit losses, no income relatable to any of the eligible units forms part of gross total income and therefore no deduction u/s. 80-IA is eligible. Our submission: a. In this regard, it is humbly submitted that the issue raised by Ld. DR before Your Honours with respect to set-off the losses of 3 power generating units against the profit of 4 units and that after such set-off of inter-unit losses, no income relatable to any of the eligible units forms part of gross total income and therefore no deduction u/s. 80-IA is elig....
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....ts and gains entitled to deduction under section 80-IA of the Act. Moreover, this provision is of overriding nature providing specifically that during each of the assessment years in the tax holiday, period in which the assessee is entitled to deduction under section 80-IA of the Act, this provision will be applied as if the industrial unit is an independent unit and is the one and only source of income possessed by the assessee. 14. It is clear that while computing deduction under section 80-IA of the Income-tax Act, 1961, the profits and gains of Kalamb unit for the purpose of determining the quantum of deduction under section 80-IA(5) of the Act is to be computed if such eligible business of the said unit is the only source of income of the assessee. The Assessing Officer mixed the profits of the Kalamb unit with the profits of units at Delhi and NOIDA and, thus, he erroneously restricted the deduction to the extent of business income and this was done by him in total disregard of the previsions of sub-section (7) of section 80-IA of the Act as mentioned above. 15. Thus, the Kalamb unit being the only unit of the assessee eligible for deduction under section 80....
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.... There are no brought forward losses or unabsorbed depreciation. The claim of deduction under section 80-IA was in respect of eligible unit 4.14 MW wind energy division at Rs. 4,72,28,143 and the deduction u/s.80HHC of the Act was claimed in respect of other units at Rs. 15,51,440. Even if both the deductions are added the sum total is obviously less than the gross total income. In our considered opinion the learned Commissioner of Income-tax (Appeals) has erred in interpreting the relevant provision when he held that the losses suffered by the assessee in two eligible units be reduced from the income of the other eligible unit before granting the deduction under section 80-IA. Since the facts of the case in the case of Synco Industries Ltd. (supra) lie in an altogether different compartment, we hold that the ratio of that case cannot be considered for application to the assessee' s case. Accordingly, the impugned order is overturned and the assessee is allowed deduction under section 80-IA on the profit derived by it from eligible unit 4.14 MW wind energy unit at Rs. 4,72,28,143. 14. We find that the CIT(A) in the present case has disregarded the binding decision of t....
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.... to Rs. 100 as per the mandate of section 80A which provides that the deductions shall be allowed from the gross total income and the aggregate amount of all the deductions shall not in any case exceed the gross total income of the assessee. If however the amount of eligible relief under section 80-IB is say Rs. 90, then full amount will be eligible for deduction because the amount of the eligible relief does not exceed the gross total income. Therefore it is mandatory to work out the eligible amount of deduction under various sections of Chapter VI-A individually and then such aggregate amount has to be restricted to the amount of gross total income as computed under section 80B(5), which means the income available after adjusting all the brought forward losses and unabsorbed depreciation etc. ...... 17. Respectfully following the above decisions, we hold that the loss of the eligible units cannot be set off against the profits of other eligible units. 18. As regards the third ground of the appeal against the observations of the CIT (A) that it is only the business income of the eligible unit and not the gross total income eligible for deduction u/s 80IA....
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....corts Ltd. (supra) is distinguishable on facts and the circumstances of the present case. In the facts of Escorts Ltd.'s case, it was held that the deduction claimed u/s. 35(1)(iv) of the Act with respect to expenditure incurred on scientific research shall not be allowed again u/s. 32 of the Act i.e. Depreciation, in respect of the said asset as provided u/s. 35(2)(iv) of the Act as it will lead to double deduction which is not permissible under the law. Ld. DRs reliance on section 35 and 32 of the Act cannot be equated with the deduction allowable under Chapter VIA of the Act. With respect to the facts of the Assessee's case, there is no question of double deduction u/s. 80-IA of the Act as the allowability of deduction under chapter VIA is governed by section 80A(1) and similar deduction is not allowed under any other provisions of the Act. Thus, the reliance on the judgement of Escorts Ltd. (supra) is totally misplaced by the Ld. DR and is not applicable to the facts of the Assessee's case. d. Moreso, even if the assessee computes deduction u/s. 80IA, there is no guarantee that the benefit of deduction will be granted to the assessee. Since, the deduction will be grant....
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....It is submitted that the difference in such factual matrix has no relevance to the issue in dispute as the issue is limited only to the extent of, whether deduction u/ 80-IA is to be restricted to business income or to the GTI. Further, the Department is not relying upon what has been decided in Reliance Energy's case, but on what logically follows from the said precedent. The inferences drawn on the basis of Reliance Energy decision (supra) are thus, in our considered view, misplaced. Para 16 to 18 / Page 8-9 Ld. DR submitted that the Hon'ble SC is laying down condition of having a positive income under the head PGBP (forming part of GTI) to claim 80-IA deduction from the GTI which also consists of income from other heads of income. It is respectfully submitted, that the Ld. DR has grossly erred in interpreting the Hon'ble SC decision and on an imaginary and assumptive basis brought out a condition of having positive PGBP income forming part of GTI to claim deduction u/s. 80-IA of the Act. The said condition is neither coming out of from the provision of section 80-IA nor coming out from Hon'ble SC judgement or any other judgements on this issue. Para 19 / Page 9 to....
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....008) 299 ITR 444 (SC) Hon'ble SC in Synco's case held that if the 'gross total income' of the Assessee is 'NIL' then it would not be entitled to deductions under chapter VIA. This is precisely the Assessee's submission in present case that the deduction has to be restricted to GTI and in case of loss, no deduction is allowed (refer to Para 3(d) at Page 8 above). Further, it was held that while computing quantum of deduction under section 80-I(6), profits derived from an industrial undertaking should be taken as the only source of income in order to arrive at deduction under Chapter VI-A. But however, non obstante clause appearing in section 80-I(6) is applicable only to the quantum of deduction, whereas section 80B(5) of the Act deals with the allowability of deduction from the gross total income. Infact, assessee has computed the deduction u/s. 80-IA by treating each eligible business as a separate unit as per the principles laid down in the decision of Synco (supra). 3) A.M. Moosa vs CIT (2007) 163 Taxman 741 (SC) 3) The Hon'ble SC in the A.M. Moosa decision is applicable only for the provisions relating to the calculation of deduction u/s. 80HHC of the Act. Ref....
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....2013-14 (refer to Para 30 to 32 / Page 14-15). It may kindly be noted that the above rebuttals made may kindly be applied to Ld. DRs contention for AY 2014-15 also. 6. Further, for AY 2016-17, it is submitted that the Respondent Assessee is having a loss at the Gross Total Income stage and therefore no deduction u/s. 80-IA is claimed for the concerned year. Accordingly, there is no dispute for the AY 2016-17 before Your Honours. The Respondent Assessee most humbly submits that the above submission may kindly be taken on record for effective disposal of appeal. In case, Your Honours require any further details/clarification/documents in support of the case above, we request for an opportunity to be given in the interest of justice. 7.1 In addition to the written synopsis, he submitted that the Hon'ble Supreme Court of India has decided similar issue in favour of the assessee and filed a copy of the same. Further, he submitted that the CIT(A) has rightly allowed assessee's claim of deduction u/s 80IA of the Act following the decision of the coordinate bench in assessee's own case cited supra. 8. In the rejoinder, the ld. DR submitted that the case law relied u....
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....uction u/s 80IA from the gross total income of the assessee. Similar issue has been decided by the Hon'ble Supreme Court in the case of CIT Vs. Reliance Energy Ltd., [2021] 127 taxmann.com 69, on which reliance placed by the ld. A.R. & DR. The entire decision is reproduced as under for the sake of clarity. "1. By an order of assessment dated 31.01.2005, the Assessing Officer restricted the eligible deduction under Section 80-IA of the Income Tax Act, 1961 (hereinafter "the Act") to the extent of 'business income' only. On 23.03.2006, the Commissioner of Income-Tax (Appeal)-I (hereinafter "the Appellate Authority") partly allowed the Appeal filed by the Assessee and reversed the order of the Assessing Officer on the issue of the extent of deduction under Section 80-IA of the Act. The Income Tax Appellate Tribunal (hereinafter "the Tribunal"), upheld the decision of the Appellate Authority on the issue of deduction under Section 80-IA. The High Court refused to interfere with the Tribunal's order as far as the issue on deduction under Section 80-IA is concerned. Therefore, this Appeal by the Revenue. 2. This Appeal pertains to the assessment year 2002-03 for which t....
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....e income of the nature specified in the relevant section and allowed against income of that nature alone. The Assessing Officer elaborated on this point by stating that 'income from business' alone had to be considered for allowing any deduction computed on 'income from business' and using the same analogy, deduction computed on 'income from other sources' should be allowable against 'income from other sources' only. As the deduction under Section 80-IA of the Act pertains to profits and gains from a business undertaking, the deduction is allowable only against 'income from business'. It was held by the Assessing Officer that deduction computed under Section 80-IA of the Act could not be allowed against any source other than business. The Assessing Officer also relied upon the words 'that nature' and 'shall alone' in Section 80AB of the Act to hold that deduction under a relevant section has to be given to the extent of the income from that particular source only on which deduction is available. In the matter before us, this would mean that deduction under Section 80- IA of the Act has to be allowed only to the extent of 'income from business'. 5. It was argued by the Asse....
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....n the net eligible income, which will be deemed to be included in the gross total income. The Appellate Authority observed that Section 80AB is limited to determining the quantum of deductible income included in the gross total income. Following a decision of the Income Tax Appellate Tribunal, Mumbai dated 25.04.2003 in Royal Cushion Vinyl Products Ltd. v. Dy. Commissioner of Income Tax, 1 (1979) 3 SCC 538 Mumbai (ITA No. 770/MUM/98), the Appellate Authority set aside the order of the Assessing Officer on this count. The Appellate Authority directed the Assessing Officer not to restrict the deduction admissible under Section 80-IA of the Act to income under the head 'business'. The Assessing Officer was further directed to aggregate the deduction under Section 80-IA of the Act with the other deductions available to the Assessee and then to allow deductions of such aggregate amount to the extent of 'gross total income'. The order of the Appellate Authority was affirmed by the Tribunal and the High Court on this issue. Aggrieved thereby, the Revenue has come in Appeal. 7. The contention on behalf of the Revenue before us is that the Assessing Officer was right in holding tha....
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.... VI-A not exceeding the 'gross total income'. He relied upon judgments of this Court in CIT (Central), Madras v. Canara Workshops (P) Ltd., Kodialball, Mangalore5 and Synco Industries (supra) to argue that sub-section (5) of Section 80-IA of the Act does not restrict permissible deduction under sub-section (1) to be allowed against 'business income' only. The learned Senior Counsel for the Assessee relied upon the judgment of the Bombay High Court in Commissioner of Income-tax v. Tridoss Laboratories Ltd.6 to argue that the Appeal should not be allowed. 9. The controversy in this case pertains to the deduction under Section 80-IA of the Act being allowed to the extent of 'business income' only. The claim of the Assessee that deduction under Section 80-IA should be allowed to the 5 (1986) 3 SCC 538 6 [2010] 328 ITR 448 (Bombay) extent of 'gross total income' was rejected by the Assessing Officer. It is relevant to reproduce Section 80AB of the Act which is as follows: "80AB. Deductions to be made with reference to the income included in the gross total income. - Where any deduction is required to be made or allowed under any section included in this Chapter under t....
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....he eligible business), there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, a deduction of an amount equal to hundred per cent. of the profits and gains derived from such business for ten consecutive assessment years. **** (5) Notwithstanding anything contained in any other provision of this Act, the profits and gains of an eligible business to which the provisions of sub- section (1) apply shall, for the purposes of determining the quantum of deduction under that sub-section for the assessment year immediately succeeding the initial assessment year or any subsequent assessment year, be computed as if such eligible business were the only source of income of the assessee during the previous year relevant to the initial assessment year and to every subsequent assessment year up to and including the assessment year for which the determination is to be made." 11. The essential ingredients of Section 80-IA (1) of the Act are: a) the 'gross total income' of an assessee should include profits and gains; b) those profits and gains are derived by an undertaking or an ente....
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....t sub-section (5) pertains only to determination of the quantum of deduction under sub-section (1) by treating the 'eligible business' as the only source of income. It was submitted by Mr. Vohra, learned Senior Counsel, that the final computation of deduction under Section 80-IA for the assessment year 2002-03 as accepted by the Assessing Officer, was arrived at by taking into account the profits from the 'eligible business' as the 'only source of income'. He submitted that, however, sub-section (5) is a step antecedent to the treatment to be given to the deduction under sub- section (1) and is not concerned with the extent to which the computed deduction be allowed. To explain the interplay between sub-section (5) and sub-section (1) of Section 80-IA, it will be useful to refer to the facts of this Appeal. The amount of deduction from the 'eligible business' computed under Section 80-IA for the assessment year 2002-03 is Rs. 492,78,60,973 /-. There is no dispute that the said amount represents income from the 'eligible business' under Section 80-IA and is the only source of income for the purposes of computing deduction under Section 80-IA. The question that arises further with re....
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....en existed, permitted deductions in respect of profits and gains attributable to the business of generation or distribution of electricity or any other form of power or of construction, manufacture or production of any one or more of the articles or things specified in the list in the Fifth Schedule. It was argued on behalf of the Revenue that the profits from the automobile ancillaries industry of the assessee must be reduced by the loss suffered by the assessee in the manufacture of alloy steels. This Court was not in agreement with the submissions made by the Revenue. It was held that the profits and gains by an industry entitled to benefit under Section 80-E cannot be reduced by the loss suffered by any other industry or industries owned by the assessee. 15. In the case before us, there is no discussion about Section 80-IA(5) by the Appellate Authority, nor the Tribunal and the High Court. However, we have considered the submissions on behalf of the Revenue as it has a bearing on the interpretation of sub-section (1) of Section 80-IA of the Act. We hold that the scope of sub-section (5) of Section 80- IA of the Act is limited to determination of quantum of deduction un....