Industrial undertaking – Special deduction u/s 80-IA of ITA, 1961 – Computation – Assessee having two manufacturing units – Deduction to be at 30% of profits of eligible business and not of total income

10. CIT vs. Apollo Tyres Ltd. (No. 5); [2019] 416 ITR 571 (Ker.) Date of order: 14^th March, 2019 A.Y.: 1995-96

 

Industrial undertaking – Special deduction u/s 80-IA of ITA, 1961 – Computation – Assessee having two manufacturing units – Deduction to be at 30% of profits of eligible business and not of total income

 

The assessee manufactured and sold automobile tyres and tubes. It had two manufacturing units. The profit from the eligible business was Rs. 7,16,68,439 and the total income was Rs. 6,46,55,496. For the A.Y. 1995-96, the AO restricted the deduction u/s 80-IA of the Income-tax Act, 1961 to 30% of total income, instead of 30% of the profits of the Baroda unit as claimed by the assessee.

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