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2016 (10) TMI 535 - AT - Income TaxSet off of business loss / depreciation of the other units for computing deduction under Section 10A - Held that:- Eligibility of exemption under Section 10A of the Act has to be considered independently and the losses of other units cannot be set off. In fact, the order of this Tribunal in Amnet Systems was brought to the notice of the Assessing Officer. The Assessing Officer found that the Department had preferred appeal before the High Court, therefore, to keep the matter alive, he rejected the claim of the assessee. This Tribunal is of the considered opinion that when the matter is pending before the High Court, that cannot be a ground for not following the order of this Tribunal. Thus delete the addition. Claim of the assessee under Section 10A - Held that:- Section 10A of the Act provides for deduction for ten assessment years out of 15 assessment years. An option was given to the assessee to select the assessment year in which the deduction is to be allowed. When the assessee has not claimed any deduction for earlier assessment years and selected the assessment year 2006-07, this Tribunal is of the considered opinion that the CIT(Appeals) has rightly allowed the claim of the assessee. For the assessment year 2005-06, XIUS India Ltd. suffered a loss. The loss suffered in the assessment year 2005-06 was carried over to set off against the income of the assessment year 2006-07. When the assessee selected the initial assessment year 2006-07, this Tribunal is of the considered opinion that the CIT(Appeals) has rightly allowed the claim of the assessee. This Tribunal do not find any reason to interfere with the order of the lower authority and accordingly the same is confirmed. MAT applicability on bad debt - Held that:- It is not in dispute that what was claimed as bad debt is the amount receivable by the assessee and not payable by the assessee. Therefore, Explanation 1 to Section 115JB of the Act may not be applicable. The debt payable by the assessee was reflected in the asset side in the balance sheet which is not in dispute before the authorities below. Therefore, this Tribunal do not find any reason to interfere with the order of the lower authority and accordingly the same is confirmed. Transfer pricing adjustment on corporate guarantee - Held that:- Corporate guarantee given by the assessee does not have bearing on profits, income or assets of the assessee. Therefore, there is no any arm's length price adjustment.
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