Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (9) TMI 852 - AT - Income TaxDeduction u/s 10A computation - whether loss from non-eligible unit can be set off against the profit of eligible unit or whether only profit of eligible unit is to be considered for computation of deduction u/s 10B - 'total income' computation - Held that:- Deduction u/s 10A/10B, has to be given effect at the stage of computing the profit & gains of the business under the head ‘income from business or profession’ which shall be arrived at after adjusting loss of ineligible unit with the profit of the eligible unit i.e. giving effect to the provisions of Section 70 and 71 of the Act. This view is consistent with the circular no. 7/DV/2013 [FILE NO.279/MISC./M-116/2012] dated 16-07- 2013 as well interpretation accorded to Section 10B of the Act by the Hon'ble jurisdictional High Court decisions in the case of Hindustan Unilevers Limited v. DCIT (2010 (4) TMI 206 - BOMBAY HIGH COURT ) and CIT v. Galaxy Surfactants Limited(2012 (3) TMI 101 - BOMBAY HIGH COURT ) , which proposition of law is laid down by Hon'ble Apex Court in Jeyar Consultant & Investment Pvt. Ltd. vs CIT (2015 (4) TMI 195 - SUPREME COURT ) although given in context of Section 80HHC of the Act. Thus,it is of considered view that consequent to amended provisions section 10B makes it clear that it is a deduction and not exemption , and the computation of income has to be in accordance with the provisions of the Act, therefore, not only profits but also losses from the business have to be taken into consideration while computing deduction u/s 10B of the Act. Thus, it is held that losses incurred in the non-eligible business by the assessee are to be set off against the profit of eligible units of the assessee to arrive at the deduction u/s 10B of the Act.
|