Law:

Section:

Section 80-I, read with section 154 of the Income-tax Act, 1961 - Deductions - Profits and gains from industrial undertakings etc. after certain dates - Assessment year 1984-85 - For relevant assessment year, Assessing Officer allowed deductions claimed by assessee under section 80-I - Subsequently, Assessing Officer issued notice for rectification under section 154 and recomputed deductions under section 80-I by reducing profits of new industrial undertaking by setting off carried forward losses of year 1983-84 - However, Commissioner (Appeals) as well as Tribunal set aside rectification proceedings - Whether in view of fact that there was no carry forward losses of earlier year which could be set off against income of relevant assessment year, recompution of income for purpose of computing permissible deduction under section 80-I for new industrial undertaking was not required - Held, yes - Whether, therefore, authorities below were justified in setting aside rectification proceedings carried out by Assessing Officer - Held, yes FACTS For the relevant assessment year, the Assessing Officer allowed deduction claimed by the assessee under section 80-I. Subsequently, the Assessing Officer issued notice under section 154 on ground that deductions allowable under section 80-I had been wrongly computed and accordingly recomputed the deductions under section 80-I by reducing the profit of the new industrial undertaking by setting off the carried forward losses of the year 1983-84. On appeal, the Commissioner (Appeals) held that the entire losses of the previous year had been absorbed against the income of the assessment year 1983-84 and there being no carry forward of losses from 1983-84, there was no question of its further absorption against the income of the new undertaking for the assessment year 1984-85. The Commissioner, accordingly, set aside the rectification proceedings. On revenue's appeal, the Tribunal held that subject-matter of rectification as to whether the set off of the carry forward losses against the current year income of the new industrial undertaking was permissible was a debatable issue and, thus, the ITO could not have resorted to…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492