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TMI Blog2012 (9) TMI 1047X X X X Extracts X X X X X X X X Extracts X X X X ..... the same read as under : Ground in assessee s appeal: On the facts and in the circumstances of the case and in law, the learned CIT(Appeals) has erred in confirming that the exemption u/s 10B should be allowed after set off of brought forward unabsorbed depreciation. Ground in Revenue s appeal: On the facts and in the circumstances of the case and in law, the learned CIT(Appeals) erred in directing the Assessing Officer to allow deduction u/s 10B from the total income before set off of brought forward business losses. 3. The assessee in the present case is a company which is engaged in the business of manufacturing of chemicals. The return of income for the year under consideration was filed by it on 31-10-2005 declari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... current year s depreciation by virtue of section 32(2) and the same, therefore, should be set off against the current year s profit before computing the profit eligible for deduction u/s 10B as rightly held by the AO. As regards the brought forward business loss, he, however, directed the AO to compute the deduction u/s 10B without set off of the brought forward business losses relying on the decision of Mumbai Bench of ITAT in the case of Enercon Wind Farms (Krishna) Ltd. 21 SOT 29 wherein it was held that profits eligible for deduction u/s 10B would mean the current year s profit and gains before adjusting brought forward losses. Aggrieved by the order of the learned CIT(Appeals) on this issue, the assessee and Revenue both have raised t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bombay High Court in the case of CIT vs. Black Veatch Consulting (P) Ltd. (supra). The decision of Hon ble Bombay High Court in the case of CIT vs. Black Veatch Consulting (P) Ltd., however, is the decision of the Hon ble Jurisdictional High Court and the same being directly applicable to the issues under consideration, we are bound to follow the same. Accordingly, following respectfully the decision of Hon ble Jurisdictional High Court in the case of CIT vs. Black Veatch Consulting (P) Ltd. (supra), we direct the AO to allow deduction u/s 10B on the profits of the current year without setting off the unabsorbed depreciation and brought forward business losses as claimed by the assessee. Ground No. 1 of the assessee s appeal is accor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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