Extension of Jurisdiction by CBIC Circular: Impact and Implication

Losses from One Unit Need Not Offset Profits of Another for Section 80-IB Deduction: ITAT The ITAT ruled that losses from one unit do not need to offset the profits of another unit when claiming a deduction under Section 80-IB of the Income Tax Act. The case involved a taxpayer who was claiming a deduction for profits from an industrial unit under Section 80-IB but had incurred losses in other units. The department contended that the profits from the other units should offset the losses. However, the ITAT disagreed, stating that each unit should be treated independently for the purpose of claiming deductions. This ruling clarifies the application of Section 80-IB for businesses operating multiple units.