Karnataka HC rules that for determination of Sec 80IA(5) deduction quantum, loss and depreciation of eligible business already set off against income from other source not to be taken into consideration for computing profit eligible for deduction; No prohibition on set off of loss and depreciation of eligible business against income from other sources for period anterior to Sec 80IA claim year; Initial assessment year” used in Sec 80IA(5) is different from “beginning of the year” used in Sec 80IA(2), refers to year in which Sec 80IA deduction claim is first exercised out of the 15 year deduction window; When assessee exercises Sec 80IA claim option, losses of the years beginning from initial assessment year alone are to be brought forward, not losses of earlier years which were already set off against the income of the assessee; Revenue cannot rework the set off amount and bring it notionally in claim year once set off has taken place in earlier year : Karnataka HC [ANIL H.LAD 2014 KAR]
Posted on: Thu, 13 Mar 2014 04:52:40 +0000
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