PRAKASH KRISHNA, J. - (1.) RAISING a short controversy, the present, appeal under s. 260A of the IT Act, 1961 has been preferred by the assessee relating to the asst. yr. 1987 -88.
(2.) PAPERS , filed IT return declaring loss of Rs. 77,63,880. The business income relating to the accounting period relevant to the asst. yr. 1987 -88 has been disclosed at Rs. 17,51,602. In the assessment proceedings the assessee claimed deductions under ss. 80HH and 80 -I and submitted that these deductions should be allowed at the total income of the assessee on the profits of the industrial undertaking and the brought forward losses be adjusted/set off thereafter. The said plea has not found favour with any of the IT authorities or with the Tribunal. Hence the present appeal.
(3.) THE appeal was admitted on the substantial questions of law numbered as 1 and 2, framed in the memo of appeal which are as follows : 1. Whether the Tribunal is justified in upholding that the brought forward unabsorbed losses and deficiencies of earlier years are to be adjusted first against the current year's profits and gains of an industrial undertaking before granting of deduction under ss. 80 -I and 80HH of the IT Act, 1961 ? 2. Whether the Tribunal is justified in interpreting and holding that the gross total income in s. 80B(5) means total income of the assessee arrived at after setting off the brought forward losses and deficiencies of earlier years against the income of the current year ? As a matter of fact, both the questions referred to above, raise only one issue as to whether the brought forward unabsorbed loss and deficiencies of earlier years are to be adjusted first against the current profits and gains of an industrial undertaking before granting deduction under ss. 80 -I and 80HH of the IT Act, 1961.;