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2017 (5) TMI 967 - AT - Income TaxBenefit of deduction u/s 10B - whether the brought forward losses/unabsorbed deprecation is to be set off against profit of unit first and thereafter compute deduction u/s 10B of the Act or vise-versa? - Held that:- Hon’ble Karnataka High Court in the case of M/s Yokogawa India Ltd reported in [2011 (8) TMI 845 - Karnataka High Court] had categorically held that exemption u/s 10B is to be calculated prior to the setting off brought forward losses and unabsorbed deprecation. It was held by the Hon’ble High Court that the profits of the eligible unit, is to be calculated on stand-alone basis. It was further held by the Hon’ble High Court that section 10B being an exemption provision, income of the 10B unit has to be excluded at the source itself before arriving at the gross total income and since this income is not at all to be in the income of the assessee, there is no occasion to set off of brought forward loss of the assessee in respect of its other business against the profits of the exempted units.
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