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2014 (4) TMI 442 - AT - Income TaxDisallowance of set off of business loss of STP unit against Non-STP unit – Held that:- The CBDT circular No. 279/Misc/M-116/2012- ITJ dtd. 16. 07. 2013 has tried to remove confusion that has arisen in granting deductions u/s. 10A/10B/10AA/10BA - irrespective of their continued placement in Chapter III, section 10A and 10B as substituted by Finance Act, 2000 provide for deduction of the profits and gains derived from the export of articles or things or computer software for a period of 10 consecutive assessment years beginning with the assessment year relevant to the previous year in which the undertaking begins to manufacture or produce such article or thing or computer software - The deduction is to be allowed from the total income of the assessee – the provisions of Chapter IV and Chapter VI shall also apply in computing the income for the purpose of deduction under section 10AA and 10BA of the Act subject to the conditions specified in the said sections - the Circular has clearly laid down that the loss from eligible unit would be eligible for carry forward and set off in accordance with the provisions of section 72 of the Act that loss from an ineligible unit can be carried forward and set off against the profits of eligible unit or ineligible unit in accordance with the provisions of the Act – Decided in favour of Assessee. Disallowance u/s 14A of the Act r.w Rule 8D – Dividend income – Held that:- FAA was of the view that AO had made disallowance as per the provisions of the Act, that disallowance was made as per the calculation provided by it, that reduction in addition requested by the assessee was not in conformity with the scheme of calculating disallowance - a request was made by the assessee before the FAA to reduce the addition, as the assessee was of the opinion that addition was on higher side - By stating that addition was higher side assessee had impliedly accepted the addition in principle - Non submission of any argument before the FAA also indicates the acceptance of the assessee with regard to the addition made, though it had reservation about the quantum – the order of the FAA does not suffer from any legal infirmity – Decided against Assessee.
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