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2010 (11) TMI 764 - AT - Income TaxSet off of losses - Whether the assessing officer should have allowed the set off of losses from 10A unit as against the income assessable as "business income from other units" - Held that:- Since, the project management services performed by the assessee's UK Branch, were services performed in connection with the back office and call center services and therefore the same are fundamental to and form an integral part of the business of the assessee company hence, the income earned by UK Branch is earned from its business operations and as such should be treated as business income and not as income from other sources - as find that electricity rebate is directly connected with the industrial unit and accordingly, the same should be characterized as income from business - Considering the totality of facts and the circumstances of the case, both the incomes are to be considered under the head 'business income' and there is no valid reason to the assessing officer for taxing the same under the head 'income from other sources' - It is pertinent to note that the eligibility for deduction under section 10A of the Act is nothing to do with the taxation of income under the head 'income from business' - Even if the income is not eligible for deduction under section 10A of the Act, it can still be taxed as business income - Thus, agree with the findings of the CIT (A) on the issue that business loss of 10A units should be set off against the business profits of non 10A units - Decided in favour of assessee.
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