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TMI Blog2010 (2) TMI 486X X X X Extracts X X X X X X X X Extracts X X X X ..... een raised by the Revenue in an appeal under section 260A of the Income-tax Act, 1961 : "(a) Whether on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified in law in holding that the profit of the Daman unit which is eligible unit, has been computed at Rs. 98.43 lakhs and if the assessee had income equivalent to or more than Rs. 98.43 lakhs deduction wo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted at Rs. 98.43 lakhs. The Assessing Officer computed the gross total income of the assessee at Rs. 14,57,200. The Tribunal directed the Assessing Officer to restrict the deduction to the extent of the gross total income, since the gross total income of the assessee is less than the eligible profit of the Daman unit. 4. The contention of counsel appearing on behalf of the Revenue is that in comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee, a deduction of an amount equal to hundred per cent. of the profits and gains derived from such business for ten consecutive assessment years. The section contemplates a deduction of an amount representing hundred per cent. of the profits and gains derived from the eligible business in computing the total income of the assessee. The expression "gross total income" is defined by section 80B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evenue cannot be accepted. 6. In Synco Industries Ltd. v. Assessing Officer of Income-tax [2002] 254 ITR 608, the Bombay High Court held that gross total income must be determined by setting off against the income, the business loss of earlier years before allowing a deduction under Chapter VI-A and if the resultant income is nil, then the assessee cannot claim a deduction under Chapter VI-A. In ..... X X X X Extracts X X X X X X X X Extracts X X X X
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