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2013 (11) TMI 1367 - AT - Income TaxDeduction u/s 10A to be allowed before or after setting off brought forward losses and unabsorbed deprecition – Held that:- Relying upon the decision of Hon’ble Karnataka High Court in the case of CIT & Anr. Vs Yokogawa India Ltd. and Others [2011 (8) TMI 845 - Karnataka High Court] and the decision of Hon’ble Tribunal in the case of RR Donnelley India Outsorce Pvt. Ltd vs DCIT [2013 (9) TMI 396 - ITAT CHENNAI], it has been held that deduction u/s 10A is allowable to the assessee without setting off of brought forward losses and depreciation. Adjustment of book profit - MAT - Section 115Jb - Book profit should be computed after or before allowing deduction of unabsorbed book loss or unabsorbed book depreciation whichever is less as claimed by the assessee – Held that:- Provision under clause (iii) of Explanation to section 115JA(2) of the Income tax act shows that brought forward losses or un absorbed depreciation has to be reduced as per the books of account - The Assessing Officer has correctly worked out the carry forward business loss or unabsorbed depreciation at Nil, because he has found that depreciation already stood reduced – Rs. 248,007,447/- was allowed as set off to the assessee in computing the book profit of the assessment year 2004-05 was of unabsorbed depreciation only and as the entire unabsorbed depreciation was allowed as deduction in assessment year 2004-05, the carried forward unabsorbed depreciation was NIL in the instant case and consequently, the deduction allowable under clause (iii) of Explanation to section 115JB(2) in the year under consideration comes to NIL – Decided in favor of Revenue.
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