2009 (12) TMI 15

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...., a private limited company, engaged in manufacture of corrugated papers and craft papers, filed income tax return declaring loss of Rs.77,63,880/-. The business income relating to the accounting period relevant to the assessment year 1987-88 has been disclosed at Rs.17,51,602/-. In the assessment proceedings the assessee claimed that deductions under Section 80 HH and 80-I and submitted that these deductions should be allowed at the total income of assessee on the profits of the industrial undertaking and the brought forward losses be adjusted/set off thereafter. The said plea has not found favour with any of the Income Tax Authorities or with the Income Tax Appellate Tribunal. Hence the present appeal. 3. The appeal was admitted on the s....

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.... to place reliance upon the judgment of the Apex Court in the case of Kotagiri Industrial Co-operative Teaks Factory (1997) 224 ITR 604. The said case was under Section 80 P (2) of the Income Tax Act and is, therefore, not applicable to the controversy involved herein. On the other hand, Sri A.N. Mahajan, learned standing counsel, submits that the controversy is covered by the decision of Apex Court in the case of Synco Industries Limited Vs. Assessing Officer (Income Tax) and another : (2008) 299 ITR 444. 7. Considered respective submissions of the learned counsel for the parties and perused the record. 8. Section 80 B(5) defines "Gross Total Income". It means the total income computed in accordance with the provisions of the Income Tax ....

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....ns under Chapter VI-A. The effect of clause (5) of section 80B of the Act is that "gross total income" will be arrived at after making the computation as follows : (i) making deductions under the appropriate computation provisions; (ii) including the incomes, if any, under sections 60 to 64 in the total income of the individual; (iii) adjusting intra-head and/or inter-head losses; and (iv) setting off brought forward unabsorbed losses and unabsorbed depreciation, etc. 9. In this case, the Supreme Court has relied upon its earlier decision in the case of CIT Vs. Kotagiri Industrial Cooperative Teaks Factory Ltd. (supra), which has also been relied upon by the Tribunal in the order under appeal. 10. The Supreme Court has noticed that th....