Law:

Section:

Section 80HH of the Income-tax Act, 1961 - Deductions - Profits and gains from hotels or industrial undertakings, etc., in backward areas - Assessment year 1982-83 - Whether where after set-off of losses of earlier years, gross total income results in loss, no deduction under section 80HH would be admissible - Held, yes CASE REFERRED TO CIT v. Kotagiri Industries Co-operative Tea Factory Ltd. [1997] 224 ITR 604/ 91 Taxman 214 (SC) [Para 5]. A.N. Mahajan for the Applicant. ORDER 1. The Income-tax Appellate Tribunal, Delhi, has referred following question of law under section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as 'the Act') for opinion to this Court :- "Whether on the facts and in the circumstances of the case, the Tribunal was right in allowing claim of the assessee in respect of deduction under section 80HH of the Income-tax Act, 1961?" 2. Briefly stated the facts involved in the present case are as under :- The present reference relates to the assessment year 1982-83. The respondent company filed return showing the income as follows :- "3. Profits and gains of business or profession. As shown against Col. (d). Rs. 26,02,017 7.Deduction: unabsorbed losses/ Allowances brought forward from Earlier years & Investment allowance/ Development rebate/allowance. Rs. 3,84,11,053 8.Gross Total Income. (-) Rs. 3,58,09,036." While completing the assessment at net loss at Rs. 2,65,12,669, the claim under section 80HH amounting to Rs. 5,20,402 was not considered to be legally correct and as such the same was not allowed on the following grounds :- "The assessee has claimed deduction of Rs. 5,20,402 under section 80HH of the Income-tax Act, 1961. This claim has been examined with reference to the provisions of section 80HH of the I.T. Act. This claim was allowable only if after deduction of depreciation, investment allowance and carry forward losses, the resultant figure comes to profit. In this case after deduction of depreciation investment allowance and carried forward unabsorbed depreciation and other losses, the resultant figure is loss. Hence the assessee is not entitled to the deduction under section 80HH of the I.T. Act." 3. The respondent…

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