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2012 (11) TMI 158 - AT - Income TaxSetoff of business loss against house property income and income from other sources - CIT(A) allowed the claim - Held that:- The records indicate that assessee had been claiming deduction u/s. 10A in the past and the assessee had carried forward losses of business from it. In the year under appeal assessee set off the brought forward business loss from Income from house property and income from other sources. As per provisions of Sec. 10A, the assessee is allowed deduction in respect of profits derived from the undertaking eligible under the section from the total income of the assessee which means that total income of the assessee could include the profits/losses derived from such unit and if there is any profit, then the eligible amount will be deducted in computing total income. Thus it can be seen that provisions of Sec. 10A are in the nature of deduction and not exemption. Sec.14A is applicable only in respect of “expenditure incurred” in respect of income which is not includible in total income and does not deal with the losses. Losses cannot be construed to be expenditure. Therefore, all the provisions of the Act would be applicable for the purpose of computing the total income of the assessee, unless expressly by the Legislature - in favour of assessee.
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