9911796707
TMI Blog2012 (10) TMI 1174X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the reopening of the assessment u/s 147 of the Income Tax Act, 1961 by the Assessing Officer. 2. On the facts and in the circumstances of the case as well as in law, the Ld CIT (A) has erred in relying upon the Assessing Officer s decision on set-off of unabsorbed depreciation of ₹ 27,37,487/- while computing deduction u/s 80-IB. 3. Briefly stated the relevant facts of the case are that the assessee is engaged in the manufacturing and trading and filed its return declaring the total income of ₹ 21,14,734/-. The same was scrutinized u/s 143(3) and the total income was determined at ₹ 30,68,880/-. The assessment was reopened by issuing a notice u/s 148 of the Act. In view of the Hon ble Supreme Court judg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bove, assessee is in appeal before us. 4. Before us, Ld Counsel for the assessee mentioned that the Assessing Officer issued notice u/s 148 without jurisdiction and without prejudice, Ld Counsel did not press this ground. Therefore, without going into the merits of the arguments raised by Ld Counsel in support of the ground, ground no.1 is dismissed as not pressed. 5. Regarding ground no.2 relating to the procedure of computation of the allowable deduction u/s 80-IB of the Act vis a vis the unabsorbed depreciation of ₹ 27,37,487/-, Ld Counsel for the assessee brought our attention to provisions of subsection 5 to section 80-IB of the Act and argued that the profits of the eligible unit have to be computed on a standalone basis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tes that the profits and gains of the eligible business should be computed as if such eligible business were the only source of income of the assessee during the previous year. Therefore, the CIT (A) erred in ignoring the underlying principle that the eligible business/unit of the assessee should not be denied of rightful claim of deduction by reducing the said profits by unduly setting off either against the losses of the other units of the assessee or against the unabsorbed depreciation as in the instant case. In fact, the said decision of the Tribunal was available at the relevant point of time ie on 27th Jan 2011 the date of the order of the CIT(A) and however, the assessee did not cite the same. Therefore, in our opinion, the issue rai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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