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2012 (7) TMI 64 - HC - Income TaxEntitlement for deduction u/s 10A - receipt of foreign exchange after expiry of time stipulated u/s 10A(3)- Held that:- the assessee to be entitled to the benefit of Section 10A, the sale proceeds would have to be brought into the country within a period of six months from the end of the previous year, however, the legislature has consciously in express words has vested the power to extend the time-limit for the said benefit, if the competent authority chooses to allow the said benefit. Therefore, the six months' period prescribed is not mandatory. As the statute does not prescribe any time-limit within which the application is to be made for such an extension of time and the period within which the competent authority has to pass an order Tribunal was justified in setting aside the order of the Appellate Commissioner as well as the Assessing Officer and in extending the said benefit - in favour of assessee. Entitlement to claim expenses - revenue contested that when admittedly forfeiture took place on 18.04.2002, the assessee can claim loss only for the accounting year 2002-03 and not for 2001-02 - Held that:- As the assessee was allotted a site by KIADS against a sum deposited, assessee further deposited a charge for delay in not utilizing the said land for the purpose for which it was allotted and subsequently decided to surrender the land to the KIADB as the project could not be commenced - Considering the terms of the contract once the assessee surrendered the land in terms of the contract between the parties, the amount paid towards allotment of site land and the penalty is liable to be forfeited by the KIADB that accrued in the financial year 2001-02 for the assessment year 2002-03 - Merely because the actual order of forfeiture was passed on 18th April 2002, that date has no relevance insofar as the date of accrual is to be considered - in favour of assessee. Brought forward business loss and unabsorbed depreciation - Revenue contested that it should be adjusted before computing deduction u/s 10A - Held that:- The loss incurred by the assessee under the head profits and gains of business of profession has to be set off against the profits and gains if any, of any business or profession carried on by such assessee. Therefore, as the profits and gains under section 10-A is not be included in the income of the assessee at all, the question of setting off the loss of the assessee of any profits and gains of business against such profits and gains of the undertaking would not arise - in favour of assessee.
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