| COURT: | ITAT Mumbai |
| CORAM: | I. P. Bansal (JM), Sanjay Arora (AM) |
| SECTION(S): | 32(2), 80-IA |
| GENRE: | Domestic Tax |
| CATCH WORDS: | Depreciation, exempt income |
| COUNSEL: | Prakash Jotwani |
| DATE: | February 18, 2015 (Date of pronouncement) |
| DATE: | March 16, 2015 (Date of publication) |
| AY: | 2007-08 |
| FILE: | Click here to view full post with file download link |
| CITATION: | |
| Though u/s 80-IA(5), the profits of the eligible unit has to be computed on the ‘stand alone’ principle, in a case where the assessee also has non-business income, the brought forward unabsorbed depreciation u/s. 32(2) has to be set off against the eligible profits before computing s. 80-IA deduction | |
The assessee’s manner of computing Gross Total Income, though mathematically leading to the same result, i.e., in terms of net taxable income, is incorrect and not in conformity with either the terms of the provisions or the scheme of the Act. There is, in fact, no scope for any vacillation; the same being basic to the scheme of the Act, with the apex court in Synco Industries Ltd 299 ITR 444 (SC) explaining the manner in which the GTI is to be computed, so that independent of the provision of s. 80-I(6) (or s. 80-IA(5)), all other applicable provisions, including ss. 32(2) & s. 72, would apply in computing such income
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