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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 ..... ted towards the loss claimed in the unit which had been granted the benefit under Section 80IA - as in the present case the assessee has not admittedly claimed the benefit u/s 80IA for the relevant assessment year in respect of Unit No.2 the question of clubbing the investment for purpose of common undertaking does not arise - Section 80-IA(5) directs the income tax authorities to treat the initial unit as an entirely separate entity to the extent the benefit has to be given - in favour of assessee. - ITA No. 1130/2011 - - - Dated:- 26-7-2012 - S Ravindra Bhat And R V Easwar, JJ. For Appellant : Mr. Sanjeev Rajpal, Sr. Standing Counsel For Respondent : Mr. Ved Jain, Adv. JUDGEMENT Per : S Ravindra Bhatt, J : The reven ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held that the assessee was ineligible for deduction under Section 80IB. The assessee s appeal was accepted and the order of the Assessing Officer, was set aside by the CIT(A) vide order dated 26.5.2010. Thereafter revenue appealed and; by the impugned order dated 1.3.2011 the Tribunal rejected its contentions. 3. The Tribunal after noticing the text of Section 80IB and analyzing the facts, held as follows : 2.5 It is clear from the above discussion that the claim of deduction u/s 80IB is allowable in respect of industrial unit and not with respect to individual assessee. An assessee may have more than one industrial unit. He is entitled for claim of deduction u/s 80IB in respect of each of its industrial undertakings provided such in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here is commonality in the units, in terms of source of fund and type of products. It is also submitted that if the assessee is allowed the benefit, there would soon be a time where multiple units would be set up and all of them would be claiming deduction. On behalf of the assessee reliance was placed upon the decision of this Court in Commissioner of Income Tax Vs. Dewan Kraft System (P) Ltd. (2008) 297 ITR 305 (Del.) . It was contended that the Court had occasion to consider Section 80IB(7) of the Act as it stood then. The benefit granted to a small scale unit, in terms of Section 80IA and 80IB of the Act, is based upon the Central Government s policy that such undertakings should receive treatment in uniform manner to promote and encou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of income of the assessed during the previous year relevant to the initial assessment year and to every subsequent assessment year up to and including the assessment year for which the determination is to be made. 13. Perusal of the above provision shows that it is a distinct and separate deeming provision which lays down the special method of computing the profits and gains entitled to deduction under s. 80-IA of the Act. Moreover, this provision is of overriding nature providing specifically that during each of the assessment years in the tax holiday, period in which the assessed is entitled to deduction under s. 80-IA of the Act, this provision will be applied as if the industrial unit is an independent unit and is the one and only ..... X X X X Extracts X X X X X X X X Extracts X X X X
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