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2017 (11) TMI 2038 - HC - Income TaxDeduction u/s 10A - whether required to be allowed before adjusting the brought forward losses and unabsorbed depreciation? - HELD THAT:- It is clear from the ratio laid down in CIT VS. YOKOGAWA INDIA LIMITED [2016 (12) TMI 881 - SUPREME COURT] that the unit that is contemplated for grant of benefit of deduction is the eligible undertaking (unit), that the stage of deduction of the profits and gains of the business of an eligible undertaking has to be made independently, that at that stage, the aggregate of the incomes under other heads and the provisions for set off and carry forward under Sections 70, 72 and 74 of the Act, would be premature for application of Section 10A. It can be further culled out from the said judgment that, deductions under Section 10A of the Act would be prior to the commencement of the exercise to be undertaken under Chapter VI of the Act, for arriving at the total income of the assessee from the gross total income. The Supreme Court also termed the use of words, “total income of the assessee” under Section 10A as somewhat discordant and held that the said expression has to be construed as a total income of the undertaking. Decided in favour of assessee. Income u/s 10A is an exemption or deduction - The Supreme Court in CIT VS. YOKOGAWA INDIA LIMITED [2016 (12) TMI 881 - SUPREME COURT] held that Section 10A as amended, is a provision for deduction. This question is answered accordingly.
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