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2016 (12) TMI 1673 - AT - Income TaxSet off of losses of Unit-II against the business income - plea of Revenue is that such losses cannot be adjusted against taxable profits of the assessee and has to be carried forward to be set off against future profits of such eligible units only - Held that:- Section 10A of the Act was an exemption provision and section 10(6) of the Act provided restriction on set off and carried forward of business losses and unabsorbed depreciation. However, the said restriction has been withdrawn by way of amendment by the Finance Act, 2003 w.e.f. 2001-02. Therefore, after determining the balance profits of eligible units i.e. after allowing deduction claimed under section 10A of the Act, the losses from other units are to be set off against the balance profits and the income / loss from business is to be accordingly, computed in the hands of assessee. Computation of profits under section 10A(7) - Held that:- Assessing Officer has not proved that any arrangement had been arrived between the parties which resulted in higher profits. Consequently, the re-working of the profits by Assessing Officer by invoking section 10A r.w.s. 80-IA(10) of the Act is not justified. Set off the losses arising from STPI units against the balance profits determined of the eligible units, after allowing deduction under section 10A of the Act.
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