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2016 (6) TMI 690 - AT - Income TaxRevision u/s 263 - CIT(A) directing AO to set off the brought forward depreciation and loss before allowing the deduction u/s 10A of the I.T. Act. - Held that:- We find that the assessee during the relevant financial year, had brought forward business losses and depreciation of earlier years pertaining to the non 10A units. It is also not in dispute that this is the final year of the exemption u/s 10A of the I.T. Act. The decision relied upon by the learned DR is the decision of the Coordinate Bench of the Tribunal dated 21.05.2010 for the A.Y 2004-05, whereas the decisions relied upon by the assessee’s Counsel are of the Hon'ble Karnataka and Delhi High Courts for the A.Ys 2001-02 to 2006-07 and 2002-03 respectively. The Hon'ble High Courts have taken into consideration the amendment to section 10A and 10B and also that the earlier exemption provision has been converted into a deduction and even in the present form, section 10A is an exemption provision and therefore, the deduction u/s 10A of the I.T. Act has to be allowed from the total income of the assessee and the question of un-absorbed business loss of non 10A Units being set off prior thereto would not arise. See CIT Versus TEI TECHNOLOGIES PVT. LTD. [2012 (9) TMI 47 - DELHI HIGH COURT] and CIT vs. Yokogawa India Ltd [2011 (8) TMI 845 - Karnataka High Court ] - Decided in favour of assessee
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