M/S. SYNCO INDUSTRIES LTD. vs ASSESSING OFFICER,INCOME TAX MUMBAI &ANR

The Supreme Court upheld the decision of the Bombay High Court regarding the interpretation of Section 80HH and Section 80-I of the Income Tax Act, 1961, stating that gross total income must be computed after setting off business losses from earlier years. The Court held that if the resultant income is 'Nil', the assessee is not entitled to deductions under Chapter VI-A. The appeals were dismissed, affirming the lower courts' rulings that losses from one division can be set off against profits from another for the purpose of deductions.