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TMI Blog2018 (5) TMI 516X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal. There being no carry forward of allowable deductions under the head depreciation or development rebate which needed to be absorbed against the income of the current year and, therefore, recomputation of income for the purpose of computing permissible deduction under section 80-I for the new industrial undertaking was not required in the present case. - Decided in favour of assessee - T. C. (A) No. 866 of 2008 - - - Dated:- 10-4-2018 - T. S. Sivagnanam And N. Seshasayee, JJ. For the Appellant : Mr.N.Devanathan For Respondent : Mr. Karthick Ranganathan and Mr. Vijayakumar Punna JUDGEMENT ( Judgement of the Court was made by T. S. Sivagnanam, J. ) Heard Mr.N.Devanathan, the learned appearing for the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oner of Income Tax, reported in [(2012) 21 Taxmann.Com 95 (Madras). The operative portion of the judgment reads as follows:- 8. Coming to the substantial questions of law 2 and 3 framed on 11.07.2007 and extracted supra, the issue is squarely covered by a decision of this court in Velayudhaswamy Spinning Mills (P.) Ltd. v. Assistant Commissioner of Income-tax reported in [2012] 21 taxmann.com 95 (Mad.), wherein, this court, at paragraph Nos.18 to 23 held as follows:- 18. From a reading of the above, it is clear that the eligible business were the only source of income, during the previous year relevant to the initial assessment year and every subsequent assessment years. When the assessee exercises the option, the only losses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fit during the year. The unreported judgment of this court cited supra considered the scope of sub-section (6) of section 80-I, which is the corresponding provision of sub-section (5) of section 80-IA. Both are similarly worded and, therefore, we agree entirely with the Division Bench judgment of this court cited supra. In the case of CIT v. Mewar Oil and General Mills Ltd. (No.1)[2004] 271 ITR 311 (Raj); [2004] 186 CTR (Raj) 141, the Rajasthan High Court also considered the scope of section 80-I and held as follows (page 314 of 271 ITR): Having considered the rival contentions which follow on the line noticed above, we are of the opinion that on finding the fat that there was no carry forward losses of 1983-84, which could be set off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... current year and, therefore, re computation of income for the purpose of computing permissible deduction under section 80-I for the new industrial undertaking was not required in the present case. Accordingly, this appeal fails and is hereby dismissed with no order as to costs. 20. From a reading of the above, the Rajasthan High Court held that it is not at all required that losses or other deductions which have already been set off against the income of the previous year should be reopened again for computation of current income under Section 80-I for the purpose of computing admissible deductions thereunder. We also agree with the same. We see no reason to take a different view. 21. The standing counsel appearing for the R ..... X X X X Extracts X X X X X X X X Extracts X X X X
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