Search Results Page
Search Results
1 - 10 of 11 (0.42 seconds)The Income Tax Act, 1961
Section 80I in The Income Tax Act, 1961 [Entire Act]
Section 80 in The Income Tax Act, 1961 [Entire Act]
Section 70 in The Income Tax Act, 1961 [Entire Act]
The Commissioner Of Income-Tax vs M/S Accel Transmatic Systems Ltd on 2 December, 2009
If we look at the scheme
of the section 80IA(2), it speaks about the "undertaking" or "enterprise" and not
the business of the assessee. Admittedly, three wind mills at the 3 locations are
independently operated and the financial results are separately worked out. As
per sub-sec.(5) of section 80IA, for computing the deduction u/s 80IA(2), the
eligible business is to be treated as the only source of income. Sub-sec.(5) of
section 80IA has been explained by the Hon'ble High Court and Kerala in the
case of CIT Vs. Accel Transmatic Systems Ltd. 230 CTR 206 (Ker) which has
been followed by the Ld. CIT(A). The term "business" used in sub-sec.(5)
section 80IA in our humble opinion is confined to the independent undertaking
and cannot get merged with the other businesses. In Sec. 80IA(2), for claiming
deduction "undertaking" or "Enterprise" as such is to be considered. Sec.80IA(2)
is charging sections for determining basic eligibility and there is no mention of
word "business". Sub-sec.(5) of Sec.80IA speaks of business but same is to be
construed as business of "undertaking" or "Enterprise" as referred to in Sub-
sec.(2) of Sec.80IA. It is well settled principle of interpretation of statutory
provision that they are to be interpreted harmoniously to make workable to give
intended results. Hence, as rightly held by Ld. CIT(A) term "business" used in
sec.80IA(5) is to be construed and understood to mean "business" or
16
ITA Nos.815,891,1494&1600/PN/2011 M/s. JSons Foundry Pvt. Ltd., Sangli
"undertaking or enterprise". In our opinion, the Ld. CIT(A) in his well reasoned
order has rightly held that every unit constitute a separate undertaking engaged
in the eligible business and losses from one unit cannot be set off against the
profits. Another unit engaged in the same business for the purpose of
computing the deduction u/s 80IA. We find no reason to interfere with the
findings of the Ld. CIT(A) on this issue. Accordingly, the same are confirmed
and grounds taken by the revenue are dismissed.
Section 2 in The Electricity Act, 2003 [Entire Act]
M/S Synco Industries Ltd vs Assessing Officer, Income Tax,Mumbai & ... on 13 March, 2008
It would appear
therefore, that read with the decision given in Synco case (supra)
sections 80IA(1), 80IA(4) and 80IA(5) would render only the profits of
the business and not the profits of the individual revenue centres,
which in this case are the units located at Satara, Tamil Nadu and
Gudhe-Panchgani, as eligible for deduction. Hence, it appears at the
first blush that the action of the assessing officer in computing the
deduction by aggregating the incomes / profits and gains of all the
windmills is correct. However, this is not a correct formula for
working out the claim of deduction under section 80IA.