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2013 (3) TMI 509 - AT - Income TaxExemption u/s.10B - Deduction on the total income of both the units - Held that:- It is settled law that if a decision of High Court is available, then the decision of Tribunal, even if that is of Special Bench, cannot override the same. Since the decision of Hon’ble Kerala High Court is squarely applicable to the facts of the case and therefore following the same, we decide this issue against the assessee. Section 10B(4) itself refers to “total income” which would mean “income of all units put together”. The Special Bench of the Tribunal in the case of the Tribunal in the case of M/s. Scientific Atlanta India Technology P. Ltd. vs. ACIT [2010 (2) TMI 658 - ITAT, CHENNAI] has taken the view that deduction u/s.10A does not fall in Chapter VIA. Therefore, sec. 80AB could not be applied which mandates the deduction to be out of ‘gross total income’. On this basis, deduction of profitable unit was held to be allowable without adjusting the same against the loss of other units. However, the Hon’ble Kerala High Court in CIT, Cochin vs. Patspin India Ltd. [2011 (9) TMI 276 - KERALA HIGH COURT] has taken a contrary view. In that case also, the assessee had two industrial units and both of them were qualifying u/s.10B. The Hon’ble Court referred to the provisions of sec.10B and held that profit has to be computed in the manner laid down in sections 32 to 43D. Deduction eligible under section 10B(4) has to be determined with reference to export turnover and the total turnover. - Decided in favor of revenue and against the assessee.
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