Hon\u2019ble Madras High Court held that once losses or depreciation of the eligible undertaking pertaining to years prior to the initial assessment year had already been absorbed against other income, such losses could not be notionally brought forward and set off again while computing deduction under section 80-IA. Section 80-IA(5) does not authorise the Revenue to reopen completed set-offs of earlier years. The statutory fiction created under section 80-IA(5) is limited in scope and cannot be extended to revive losses that have already been absorbed.<\/p>\n
Hon\u2019ble High Court further held that section 80-IA(9) does not affect the computation of deductions available under other provisions falling under Heading \u201cC\u201d of Chapter VI-A, such as sections 80HHC and 80-IB. The provision merely restricts the aggregate allowability of deductions so that the total deduction under all eligible provisions does not exceed 100 per cent of the profits of the business. It does not require one deduction to be reduced from another at the stage of computation.(AY. 2003-04)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 80IA: Industrial undertakings-Infrastructure development-Restricting the deduction by notionally brought forward losses and depreciation relating to the eligible undertaking pertaining to years prior to the initial assessment year, even though such losses and depreciation had already been set off against other business income in those earlier years, was unjustified-Section 80-IA(9) does not affect the computation of deductions available under other provisions falling under Heading \u201cC\u201d of Chapter VI-A . [S.80HHC, 80IA(5), 80IA(9), 80IB]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-64368","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-gKc","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/64368","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=64368"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/64368\/revisions"}],"predecessor-version":[{"id":64369,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/64368\/revisions\/64369"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=64368"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=64368"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=64368"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}