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TMI Blog2012 (12) TMI 759X X X X Extracts X X X X X X X X Extracts X X X X ..... Avitech undertaking was located within the same premises as the other poultry vaccine division or undertaking was raised before the Tribunal. Certainly, the grounds recorded by the Tribunal do not reflect this. Being a pure question of fact, this Court would not interfere with the conclusions of the authorities below on this aspect. As far as the legality of the conclusions are concerned, the Court notices that the Tribunal and the CIT (A) relied upon the ruling of the Supreme Court in CIT v. Canara Workshops [1986 (7) TMI 5 - SUPREME COURT] assessee is entitled to a deduction on the entire profits of one priority industry without deducting loss in the other priority industry - no substantial question of law arise. - REVIEW PETITION 154/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entre/undertaking. The Assessing Officer adjusted the amount of loss so claimed towards the profits earned in the Poultry Vaccine Division and computed the deduction only on the balance of profits. The assessee carried the matter in appeal. The relevant part of the Appellate Commissioner s order is as follows: - 12. The 5th and the last ground of appeal is regarding the action of the AO in not enhancing the deduction admissible u/s 80IA by Rs.8,80,345/- and on account of loss of Rs.29,34,485/- of the company‟s Avitech Division. The order of the ld. AO is silent on this point however, the ld. AR has contended that the company commenced manufacture of Poultry vaccine (in collaboration with Vineland Laboratories, USA) from its manuf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase of CIT vs. Canara Workshop P. Ltd. 3. The Revenue unsuccessfully appealed to the ITAT which rejected its contention on the claim for disallowance of the adjustment. The relevant discussion by the ITAT is as follows: - 10.1 We have heard both the parties. Under sec. 80IA, profits and gains derived by an undertaking or an enterprises from any business referred to in sub-section (4) shall be allowed as deduction. From the plain reading of the language used in sec.80-IA (1), it is clear that deduction under this section is available in respect of industrial activities of an undertaking and not in respect of gross total income of the assessee. Therefore, the loss suffered in another industrial undertaking cannot be set off against th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... poultry vaccines in collaboration with Vineland Laboratories, USA. The above manufacturing is done by the assessee from its manufacturing facility in District Hissar (Haryana). The assessee had been claiming deduction under section 80IA on the profits of this division. (ii) It may be mentioned here that during the year under consideration, assessee had commenced separate division under the name of Avitech dealing in animal health care products. Assessee suffered loss of Rs.29, 34, 485/- in this division. 6. This Court observes in none of the orders, i.e., Assessing Officer, nor the CIT (A), in fact dealt with this issue as squarely or clearly as is being urged today. Furthermore, no such contention that the Avitech undertaking was lo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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