1979 (4) TMI 38

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....f the company at Rs. 10,68,299 and deducting therefrom, brought forward losses and unabsorbed depreciation of the earlier years totalling to Rs. 7,35,801, he worked out the total income at Rs. 3,32,498. In allowing the assessee's claim for relief under s. 80HH the ITO adopted the figure of Rs. 3,32,498 as the basis as against the assessee's claim of Rs. 10,68,299. On appeal the AAC relying on the ....

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....rial Co. Ltd vs. CIT support the department's case. Referring to the decision in Cloth Traders it is pointed out that (1978) 10 CTR (SC) 393 : (1979) 118 ITR 243 (SC) has not considered the decision of the Supreme Court in (1978) CTR (SC) 50 : (1978) 113 ITR 84 (SC) 3. The AAC has rejected the assessee's claim following the decision of the Gujarat High Court in Cloth Traders. This having been r....

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.... the assessee, a deduction from such income by way of dividends of an amount equal to.... The provisions are clearly pari materia and stand in the same relation to the provisions of Chap. VI-A of the IT Act and also the concept of "gross total income of the assessee". Apart from the above our decision that relief must be given on the gross income worked out for the year without any adjustment o....

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....t he would be entitled to the relief on the income from the undertaking concerned. Merely because certain adjustments are to be made by carrying them forward from earlier years the income from this source cannot be reduced. In particular it is open to any assessee to claim that he is not interested in adjustment of losses carried forward or unabsorbed depreciation of the earlier years. There is no....