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TMI Blog2016 (7) TMI 409X X X X Extracts X X X X X X X X Extracts X X X X ..... rein held that under section 80-I(6) of the Act for the purposes of calculating the deduction, the loss sustained in one of the units, cannot be taken into account because sub-section (6) of the Act contemplates that only the profits shall be taken into account as if it was the only source of income - for the purposes of computation of gross total income the losses of other units are to be taken into account but for the purposes of calculating the deduction of industrial undertaking, the loss sustained in another unit cannot be taken into account and only the profit shall be taken into account as if it was the only source of income of that unit. In view of above, question formulated above is answered in favour of Assessee and against Rev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll) in which similar question with respect to Sections 80-I and 80HH has been considered and this Court has said as under; The assessee, however, disclosed nil net income after the adjustment of the unabsorbed business loss, investment allowances, depreciation, etc. The deduction under Sections 80HH and 80-I have been claimed before adjusting the unabsorbed business loss, depreciation and investment allowance of the earlier years amounting to ₹ 10,93,172/- on the basis of the profits of the two undertakings. The assessing authority proposed to adjust unabsorbed/brought-forward losses and allowances of all the three units. In appeal, the Commissioner of Income Tax (Appeal) has held that the deduction to the undertakings are to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... derived to each industrial undertaking independently or on a consideration of the losses suffered by the service unit. Sections 80-HH and 80-I of the Act contemplate the deduction from the income derived by the undertaking. The CIT (Appeal) has rightly held that income of the undertaking shall be calculated on a consideration of an absorbed business losses, etc. in respect of each individual unit and thereafter on the profit derived by the unit the deduction is to be allowed. This view of the CIT (Appeal) confirmed by the Tribunal is in accordance to provisions of the Act as well as inconsonance with the law laid down by the Apex Court and Delhi High Court. The Apex Court in the case of Synco Industries Ltd. v. Assessing Officer (Income-tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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