9911796707
TMI Blog2008 (1) TMI 428X X X X Extracts X X X X X X X X Extracts X X X X ..... of the case are in a narrow compass. The assessee company is engaged in the production of plastic containers. The original assessment of the assessee was completed under section 143(3) on March 26, 1997. But subsequently, notice under section 148 was issued on the reason that excess deduction has been allowed under section 80-I without considering the business loss of Rs. 3,05,100 relating to the assessment year 1995-96. Learned senior counsel submitted that in respect of the assessment year 1995-96, the assessee filed the return of loss declaring net loss of Rs. 3,05,100 on April 2, 1996. The Assessing Officer completed the assessment of the assessee under section 143(3) for the assessment year 1995-96 on January 21, 1997, and the Assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... usiness loss was refused by the Assessing Officer and there is no justification to reduce the profit in the assessment year 1996-97 while computing the deduction under section 80-IA. Per contra, the learned Departmental representative submitted that as per the provisions of section 80-IA(7) where there is a non obstante clause, it overrides the other provisions of the Act and the Commissioner of Income-tax (Appeals) has rightly confirmed the order of the Assessing Officer. The learned Departmental representative supported the order of the Commissioner of Income-tax (Appeals). We have heard the rival submissions of the parties. We have also carefully considered the facts of this case as per record available before us. There is no dispute ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee's business. We are unable to accept the view taken by the Assessing Officer as well as the Commissioner of Income-tax (Appeals). In our opinion, both the authorities below have mis-interpreted the provisions of section 80-IA of the Act. The relevant portion of section 80-IA reads as under: "(7) Notwithstanding anything contained in any other provisions 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 sub-section (5) 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 th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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