Ganganagar Sahakari Spinning Mills Ltd. vs Dy. Commissioner of Income Tax

By the Court

The assessing officer made an addition of Rs. 1,15,102 holding that the gross total income of the appellant-assessee after giving set off to the brought forward losses and investment allowance, works out to be negative, as such, the deduction u/s 80P(2)(d) was not allowable. The Commissioner (Appeals) allowed deduction u/s 80P(2)(d) to the assessee observing that the same is allowable irrespective of whether the income is positive or negative. The Tribunal in the impugned order expressed that the deduction u/s 80P(2)(d) cannot be allowed to the assessee, as the gross total income has been assessed by the assessing officer at nil. This court in Commissioner of Income Tax Vs. Vishnu Oil and Dal Mills, has held that for computing the special deduction allowable under heading ''C'' Chapter VI-A in respect of any income of the nature specified in that section, notwithstanding anything contained in section 80P(2)(d) , the amount of income of that nature as computed in accordance with the provisions of the Act, shall alone be deemed to be the amount of income of that nature which is derived by the assessee and included in his gross total income.

In the instant case, the amount of income of the nature as computed in accordance with the provisions of the Act, shall alone be deemed to be the amount of income of their nature, which is derived by the assessee and included in the gross total income. The same view has been taken by the Apex Court in Commissioner of Income Tax, Tamil Nadu-V, Madras Vs. Kotagiri Industrial Co-operative Tea Factory Ltd., Kotagiri,

In view of this, no substantial question of law is involved in the appeal, which is hereby dismissed.

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