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2010 (2) TMI 658 - AT - Income Tax
Deduction u/s 10A - Whether the business loss of non eligible unit, have to be set off against the income of the eligible unit - Held that:- the deduction under s. 10A is not an exemption but only a deduction under Chapter III of the IT Act and the provisions of s. 80AB of Chapter VI-A would not be applicable to such deduction under s. 10A, and also that the deduction under s. 10A is undertaking specific - there is only one eligible unit claiming deduction under s. 10A and hence, the loss from non-eligible unit cannot be set off against the profits of the eligible unit while determining deduction under s. 10A.
AO directed to set off the trading loss against income from other sources and to allow remaining loss to carry forward. - Decided in favor of assessee.
Carry forward of unabsorbed claim under s. 10A - Held that:- The provisions of Section 10A(6)(ii) talks about loss referred to in s. 72(1) or 74(3) and not the unabsorbed claim under s. 10A. - When the section itself allows 90 per cent of such profit of eligible business, obviously, 10 per cent of the same is be subjected to tax, otherwise what is the meaning of the amendment. Specifically when the provision of the Act does not support the direction of the learned CIT(A) - Decided in favor of revenue.