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TMI Blog2021 (6) TMI 824X X X X Extracts X X X X X X X X Extracts X X X X ..... n'ble Division Bench of this Court in the Judgment reported in Commissioner of Income Tax, Coimbatore v. M/s.Bannari Amman Sugars Ltd. [ 2019 (3) TMI 14 - MADRAS HIGH COURT ] the question of law is decided against the Revenue and in favour of the assessee. - THE HON'BLE MR. JUSTICE M.DURAISWAMY And THE HON'BLE MRS.JUSTICE R.HEMALATHA For the Appellant : Mr.T.R. Senthil Kumar Senior Standing Counsel Assisted by K.G. Usha Rani For the Respondent : Mr.R.Venkatnarayanan JUDGMENT (Judgment was delivered by M. DURAISWAMY, J.) Challenging the order passed in I.T.A.No.1196/Mds/2009 in respect of the Assessment Year 2006-2007 on the file of the Income Tax Appellate Tribunal, Chennai, C Bench (for brevity, the Tribunal), the Revenue has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion is to be made. There is thus no doubt that each unit, including a CPP, has to be seen independently as separate and distinct from each other and as units for the purposes of grant of deduction under section 80IA of the Act. 14. Coming to the computation itself, reliance is placed by the Department on a judgment of the Supreme Court in the case of Synco Industries Ltd. v. Assessing Officer, Income-Tax, Mumbai [2008] 168 Taxman 224/299 ITR 444 (SC). The Supreme Court was considering the case of an assessee managing multiple units, some earning a profit and others, losses. The question before the Bench was whether the losses suffered by the eligible oil division ought to be adjusted against the profits of the chemical division in finalizin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otal income of an assessee shall include profits from a priority undertaking. 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 total income shall be arrived at after adjusting the losses of the other division against ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otal income was 'Nil' the assessee was not entitled to claim deduction under Chapter VI-A which includes Section 80-I also. 15. The conclusion was thus to the effect that where the assessee deserves profits from multiple units, all being eligible for deduction under Chapter VIA, the profits or losses arising from the respective units have to be considered in totality and only if the resultant figure were positive, would the assessee be entitled to its claim. Thus, the judgment considers the interplay between the income and losses arising from eligible units alone, all of which are eligible for deduction under Chapter VIA, and would not apply to the facts and circumstances of the present case whether the claim under Section 80I was r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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