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TMI Blog2019 (7) TMI 91X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee is allowed and the order passed by the Tribunal dated 17.12.2008 is set aside and the order of CIT (Appeals) is restored and the substantial questions of law are answered in favour of the assessee. - Tax Case Appeal No.408 of 2009 - - - Dated:- 18-6-2019 - Mr. Justice T.S. Sivagnanam And Mrs. Justice V. Bhavani Subbaroyan For the Appellant : Mr.P.J.Rishikesh For the Respondent : Mr.T.R.Senthil Kumar, assisted by Mrs.K.G.Usha Rani JUDGEMENT T.S.SIVAGNANAM, J. This Tax Case Appeal by the assessee filed under Section 260-A of the Income Tax Act, 1961, ('the Act' for brevity) is directed against the order passed by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n'ble Supreme Court and in the decision reported in (2008) 4 SCC 22, dated 13.03.2008 the Hon'ble Supreme Court held as as follows: 29. While computing the quantum of deduction under Section 80-I(6) the Assessing Officer, no doubt, has to treat the profits derived from an industrial undertaking as the only source of income in order to arrive at the deduction under Chapter VI-A. However, this Court finds that the non-obstante clause appearing in Section 80-I(6) of the Act, is applicable only to the quantum of deduction, whereas, the gross total income under Section 80B(5) which is also referred to in Section 80I(1) is required to be computed in the manner provided under the Act which presupposes that the gross to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n holding that the loss from the oil division was required to be adjusted before determining the gross total income and as the gross total income was 'Nil' the assessee was not entitled to claim deduction under Chapter VI-A which includes Section 80-I also. 32. The proposition of law, emerging from the above discussion is that the gross total income of the assessee has first got to be determined after adjusting losses etc., and if the gross total income of the assessee is 'Nil' the assessee would not be entitled to deductions under Chapter VI-A of the Act. 5. Though the impugned order passed by the Tribunal was on 17.12.2008, the Tribunal failed to notice that the above decision was pass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the losses and that, if the gross total income of the so determined turns out to be 'Nil', then the assessee would not be entitled to deduction under Chapter VI-A of the said Act. 7. The above referred decision is a clear answer to the case of the Revenue before us. To be noted that the Assessing Officer failed to consider that the gross total income of the assessee before deduction was ₹ 78,90,64,628/-, whereas in the case of Synco Industries Ltd., (Supra) as noted by Hon'ble Supreme Court, the factual position was different. In the said case, the Assessing Officer, noticed that the gross total income of assessee therein before deductions under Section 80 IB is nil. 8. Therefore, i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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