[IT Act] Section 80IB Doesn't Mandate Setting Off Losses Of One Eligible Unit Against Profits Of Another Eligible Unit: Mumbai ITAT
3 months, 1 week ago

[IT Act] Section 80IB Doesn't Mandate Setting Off Losses Of One Eligible Unit Against Profits Of Another Eligible Unit: Mumbai ITAT

Live Law  

The Mumbai ITAT recently clarified that an industrial undertaking was not required to set off the losses incurred by it in one eligible unit against the profits earned from another eligible unit for the purpose of calculating deduction u/s 80-IB. As per Section 80-I of Income tax Act, 1961, where the gross total income of an assessee includes any profits and gains derived from an industrial undertaking or a ship or the business of a hotel or the business of repairs to ocean-going vessels or other powered craft to which this section applies, there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, a deduction from such profits and gains of an amount equal to twenty per cent thereof. Referring to the decision in case of CIT v. Dewan Kraft Systems 297 ITR 305, the Division Bench of Saktijit Dey and Narendra Kumar Billaiya reiterated that “in computing the gross total income of assessee, the same has to be determined after adjusting the losses and that, if the gross total income of the assessee so determined turns out to be 'Nil', then the assessee would not be entitled to deduction under Chapter VI-A of the said Act”. Referring to the decision of Apex Court in Synco Industries Ltd. v. Assessing Officer, 299 ITR 444, the Bench pointed that the Supreme Court did not at all hold that while computing the deduction u/s 80-I, the loss of one eligible industrial undertaking is to be set off against the profit of another eligible industrial undertaking.

Loss Income Industrial Department Act Total Bench Deduction Losses Profits Itat Assessee Ita Cit Undertaking One Eligible Unit Eligible Unit Daman Unit  mumbai  loss  undertaking  setting  itat  doesnt  act  assessee  income  total  industrial  deduction  eligible  unit  losses  profits  mandate

History of this topic

Enterprise Manufacturing Specified Items In Designated States Can Seek Tax Deduction U/S 80IC Income Tax Act Without Agreement With Govt: Delhi HC
2 weeks, 6 days ago

Enterprise Manufacturing Specified Items In Designated States Can Seek Tax Deduction U/S 80IC Income Tax Act Without Agreement With Govt: Delhi HC

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The Delhi High Court has held that Section 80IC of the Income Tax Act, 1961, which contemplates tax incentives for enterprises operating in specific industries and locations in India, does not require such enterprises to enter into an agreement with the Government. It had sought deductions as contemplated under Section 80IC but the same were denied citing non-compliance with Rule …

Income Tax Deduction Available On Excise Duty Claim As It Does Not Amount To Double Deduction: Bombay High Court
1 year, 1 month ago

Income Tax Deduction Available On Excise Duty Claim As It Does Not Amount To Double Deduction: Bombay High Court

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The Bombay High Court has held that excise duty paid and included in the closing stock has to be claimed separately as a deduction; otherwise, the appellant would not be claiming the entire excise duty paid in the year of its payment. The ITAT has held that the appellant was not entitled to the deduction representing the excise duty claimed …

S. 80-IB Of Income Tax Act - Assessee Not Entitled To Deduction Under On Profit Derived From DEPB And Duty Drawback Schemes: Supreme Court
1 year, 11 months ago

S. 80-IB Of Income Tax Act - Assessee Not Entitled To Deduction Under On Profit Derived From DEPB And Duty Drawback Schemes: Supreme Court

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The Supreme Court has ruled that the assessee is not entitled to deduction under Section 80- IB of the Income Tax Act, 1961 on the amount received / profit derived from the Duty Entitlement Pass Book Scheme and the Duty Drawback Schemes. The court noted that in the case of Liberty India, the Apex Court had observed and held that …

Twin Conditions In Section 10B (8) Income Tax Act Has To Be Fulfilled To Claim Exemption Relief: Supreme Court
2 years, 8 months ago

Twin Conditions In Section 10B (8) Income Tax Act Has To Be Fulfilled To Claim Exemption Relief: Supreme Court

Live Law  

For claiming the benefit under Section 10B of the Income Tax Act, the twin conditions of furnishing a declaration before the assessing officer and that too before the due date of filing the original return of income under section 139 are to be satisfied and both are mandatorily to be complied with, the Supreme Court observed in a judgment delivered …

Deduction Under Section 80HH Income Tax Act Should Be From 'Gross Profits & Gains' Instead Of 'Net Income' : SC [Read Judgment]
6 years ago

Deduction Under Section 80HH Income Tax Act Should Be From 'Gross Profits & Gains' Instead Of 'Net Income' : SC [Read Judgment]

Live Law  

A three judges' bench of the Supreme Court has held that deduction under Section 80HH of the Income Tax Act 1961 should be based on gross profits and income instead of the net income from profits and gains computed as per Sections 28 to 44B of the Act.Section 80HH grants deduction from total income at the rate of 20% of …

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