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2016 (9) TMI 405 - ITAT DELHIComputation of deduction under section 10 A/10 B - brought forward business losses as well as unabsorbed depreciation - Held that:- In the present case before us the assessee has brought forward business losses as well as unobserved depreciation. The act specifies the sequence in which these allowances can be set off. Section 72 (3) implies that, the set off of unobserved depreciation as per section 32 (2) against business income shall be given effect to only after setting off the brought forward business losses. From the calculation made by the Ld.AO, it is observed that the Ld.AO has adjusted the amount of unobserved depreciation from the business income before making adjustment for brought forward business losses. The circular relied upon by the Ld.AR is not applicable to the present case under consideration as it is applicable where the set off each to be made against the profits of a STP/EOU/SEZ unit, before the deduction under section 10 A/10 B of the Income tax Act is allowed. Allowability of expenses under section 37 (1) - Held that:- CIT (A) was right in allowing the claim of the assessee to treat the stamp duty and registration expenses as revenue expenditure.
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