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2016 (12) TMI 1550 - AT - Income TaxEntitlement to deduction u/s 10B - assessee is engaged in the business of manufacture of Injection Blow Molding Machines - whether exemption u/s 10B has to be allowed from the total income before set off of brought forward losses and depreciation? - Held that:- Respectfully following the decision of Hon’ble Bombay High Court in the case of Black & Veatch Consulting (P) Ltd. (2012 (4) TMI 450 - BOMBAY HIGH COURT ) , in the case of Ganesh Polychem Ltd. v. ITO (2012 (8) TMI 953 - ITAT MUMBAI) and the latest decision of Hon’ble Bombay High Court in the case of CIT v. Techno Tarp and Polymers Pvt. Ltd. (2015 (12) TMI 909 - BOMBAY HIGH COURT) the appeal of the Revenue is not sustainable in law and hence we dismiss appeal filed by the Revenue , by upholding/sustaining the appellate order of the ld. CIT(A)’s wherein partial relief was granted to the assessee by holding that the assessee is entitled to deduction u/s 10B of the Act from current year’s profits without setting off of carry forward of business losses of the eligible unit and hence the appeal filed by the Revenue is dismissed. We would also like to clarify that Hon’ble Bombay High court in the afore-stated judgment dated 05-12-2015 in the case of CIT v. Techno Tarp and Polymers Pvt. Ltd has laid down proposition of law that even unabsorbed depreciation of eligible unit shall not be set-off against the current year profits of eligible unit while computing deduction u/s 10B of the Act.We order accordingly.
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