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TMI Blog2012 (8) TMI 196X X X X Extracts X X X X X X X X Extracts X X X X ..... y is to be taken into consideration?" 2. The assessee is a proprietor of two units i.e. "Jagdamba Industries" (Unit No.1) and "Jagdamba Exports (Unit No.2). Both units are located opposite to each other at Haryana. The Assessing Officer held that the total investment in the two units was Rs.1,26,90,532/- as on 31.3.2005 and since the amount exceeded Rs.1 crore, the assessee was not eligible to be characterized as a "small-scale industrial undertaking" within the meaning of Section 80IB(3)(ii) of the Income Tax Act, 1961, (Act for short) read with Section 11B of the Industries (Development & Regulation) Act, 1956. The first unit was claimed and was granted benefit under Section 80IB of the Act. The Assessing Officer held that deduction was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant and machinery purchase for M/s Jagdamba Exports was by the same proprietor, therefore, the investment is to be seen with respect to the individual assessee. As both the units were separately located, the deduction is to be seen with respect to investment made in each unit separately not-with-standing the fact that proprietor of both the units is the same. Accordingly, we do not find any infirmity in the order of the learned Commissioner of Incometax (sic) (Appeals) in allowing the claim of deduction in respect of the assessee's industrial unit M/s Jagdamba Industries. 2.6 In view of the above, for examining the eligibility of deduction u/s 80IB in respect of Unit No.1, namely, Jagdamba Industries, the value of plant and machinery amoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 80IA. The Court noticed the provision of Section 80IA(7). The relevant part of the reasoning of the Court is as follows : "12. It is an admitted fact that Kalamb Unit is the only unit of the assessed which is eligible for benefits available under S.80-IA of the Act during the years under consideration, whereas the other units situated at Delhi and Noida are not eligible for this benefit. It is also not in dispute that profits derived by the assessed from Kalamb Unit amounted to Rs. 20,92,221/- whereas the other units at Delhi and Noida resulted in the loss of Rs. 9,11,270/-. Provision of sub-s. (7) of S. 80-IA of the Act which is relevant in this case, is reproduced below: "(7) Notwithstanding anything contained in any other provisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f 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 provisions of sub-s.(7) of s. 80-IA of the Act as mentioned above. 15. Thus, the Kalamb unit being the only unit of the assessed eligible for deduction under s. 80-IA of the Act is to be treated as an independent unit and the same is to be treated as the only source of income for assessed for the purpose of computing deduction under s. 80-IA of the Act. The deduction claimed by the assessed under s.80-IA of the Act, thus, is in accordance with the said provisions and as such we find that there is no infirmity in the impugned order passed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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