Hon’ble Delhi High Court held that Sub-clause (5) of Section 80IA of the Act do not create any fiction that losses which have already been absorbed, will be notionally carried forward and adjusted against the profits derived from the eligible business to quantify the deduction that the assessee could claim under section 80IA of the Act. (AY. 2016-17)
PCIT v. Sterling Agro Industries Ltd. (Delhi) (2023) 455 ITR 65 / 335 CTR 521 /151 taxmann.com 203 (Delhi)(HC)
S. 80IA : Industrial undertakings-Infrastructure development-Initial assessment year-loss or unabsorbed depreciation, which had already been set-off prior to initial year, would not be notionally carried forward and adjusted against profits of eligible business in order to determine deduction. [S. 32, 72, 80IA(5)]