The Madras High Court held that the deduction under Section 80IA of the Income Tax Act, 1961 to be allowed to single Industrial Unit, all Units can not be taken together.
The revenue assailed the order of the Income-Tax Appellate Tribunal wherein it was held that the assessee is entitled deduction under section 80IA of the Act, even though where a company apart from his regular business and in the business of generation and distribution of power, owning more than one Industrial Undertaking, deduction under Section 80IA of the Act is to be allowed to a single Industrial Unit not all the units taken together.
Advocate T.R. Senthil Kumar, the Senior Standing Counsel appearing for the appellant-revenue, submitted that the substantial question of law arising for consideration in this appeal is covered against the revenue by a Judgment of the Division Bench of this Court reported in Commissioner of Income Tax, Coimbatore v. M/s.Bannari Amman Sugars Ltd.
Mr. R.Venkatnarayanan, counsel appearing for the respondent also submitted that in view of the Judgment of the Division Bench of this Court in the case of Commissioner of Income Tax, Coimbatore v. M/s.Bannari Amman Sugars Ltd., the appeal is liable to be dismissed.
The division bench of Justice M.Duraiswamy and Justice Hemalatha relied on the judgement in the case of Commissioner of Income Tax, Coimbatore v. M/s.Bannari Amman Sugars Ltd. wherein it was held 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 restricted only to the 16 MW unit at Karnataka. Mr.Senthil Kumar, fairly, does not dispute this position.
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