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2010 (6) TMI 439 - AT - Income TaxDeduction u/s 10A and unabsorbed business loss – Assessee is engaged in computer-aided design and engineering services; software development including networking management; and manufacture and sale of tools and moulds, through its three Units located at Chennai, Bangalore and Kochi respectively - Assessing Officer was of the view that the loss from the other two Units had to be first adjusted (set-off), and as that left the assessee with no positive income, it would not be entitled to any exemption under section 10A - Tribunal (Chennai) in the case of Scientific Atlanta India Technology (P.) Ltd. v. Asstt. CIT. Held that: the deduction under section 10A in respect of the ISR Centre, Bangalore, is to be computed only qua its profits, i.e., without any adjustment or set off of any loss from another source, either eligible or non-eligible (under section 10A). The allocation of preliminary expenses under section 35D for the purpose could either on some reasonable basis, as turnover, or better still, set off against the specific income(s) of the Unit(s) in relation to the setting up or expansion of which the same stood incurred in the first place. - The income that obtains after the deduction under section 10A, or the ‘unabsorbed claim under section 10A’ as the Tribunal describes it in the case of Scientific Atlanta India Technology (P.) Ltd. (supra), would stand to be taxed as such, i.e., shall not be set off against any other loss or be carried forward. New issue before appellate authority - t is one thing to raise a legal argument for the first time qua a claim which stands preferred before the assessing authority, and quite another to raise the claim itself for the first time before an appellate authority, so that there is no occasion for the Assessing Officer to consider the same, and it is in respect of the latter that the decision in the case of Goetze (India) Ltd. (2006 -TMI - 5171 - SUPREME Court) would find application. - it is only the return of income coupled with the materials on record that would decide if the claim under reference was in fact pressed before the assessing authority. - In view of the specific findings by the ld. CIT(A) vide para # 8 of his Order, which stood adverted to earlier, and which stand not rebutted by the assessee before us in any manner, we do not consider the assessee’s claim as maintainable and, correspondingly, no infirmity in his Order on that ground, which stands upheld as a result.
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