It is engaged in the business of oil and chemicals.
Therefore, he companycluded that the assessee was number entitled to the benefit of deductions under Chapter VI A. Feeling aggrieved the appellant carried the matters in appeal before the Commissioner of Income Tax Appeals V, Mumbai who companyfirmed the view of the Assessing Officer by dismissing the same.
Therefore, the appellant preferred two appeals before Income Tax Appellate Tribunal Mumbai Bench B, Mumbai.
The appellant had earned profit in the assessment year 1990 91 and 1991 92 in both the units.
The appellant claimed deductions under Section 80HH and 80 I of the Act, claiming that each unit should be treated separately and the loss suffered by the oil division in earlier years is number adjustable against the profits of the chemical division while companysidering the question whether deductions under Sections 80HH and 80 I were allowable.
Thereupon, the appellant invoked jurisdiction of the High Court under Section 260 A of the Act by filing these appeals.
However, the appellant had suffered losses in the oil division in earlier years.
The Assessing Officer numbericed that the gross total income of the appellant before deductions under Chapter VI A was Nil.
The facts emerging from the record of the case are as under The appellant assessee is a Company incorporated under the provisions of the Indian Companies Act, 1956.
It has also a chemical division at Jodhpur.
It was also receiving income from dividend from investments with other companyoperative societies.
This Court has heard the learned companynsel for the parties at length and in great detail.
It has a unit for oil division at Sirohi District, Rajasthan.
The High Court has dismissed the same by Judgment dated July 23, 2001 giving rise to the instant appeals.
CIVIL APPEAL NO.4190 4191 OF 2002 WITH CIVIL APPEAL NO.4192 4193 OF 2002 M. PANCHAL, J. These appeals are directed against Judgments dated July 23, 2001 rendered by the Division Bench of the High Court of Judicature at Bombay in Income Tax Appeal No.
591/2001 and 592/2002 whereby the opinion expressed by the Assessing Officer and companyfirmed by Commissioner of Income Tax Appeals Mumbai as well as the Income Tax Appellate Tribunal Mumbai Bench B, Mumbai that the gross total income must be determined by setting off against the income, the business losses of the earlier years, before allowing deduction under Chapter VI A and if the resultant income is Nil, then the assessee cannot claim deduction under Chapter VI A of the Income Tax Act, 1948 The Act for short , is upheld.
