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2018 (5) TMI 1100 - HC - Income TaxAllowing deduction u/s. 10B on export profit of EOU before setting off carried forward unabsorbed depreciation of earlier years as provided u/s. 32(2) - Held that:- We record the statement of counsel for the assessee that there was no question of set off of unabsorbed depreciation during the year under consideration and all that the assessee had proposed before the Assessing Officer was that the deduction under section 10B has to be granted without setting off of the carry forward losses. We notice that the Karnataka High Court in case of Yokogawa India Ltd (2011 (8) TMI 845 - Karnataka High Court) had examined the provisions of section 10A of the Act (in which, similar exemption provisions have been made) before and after the amendments. The Court was of the opinion that the said provision provided for an exemption and it was not a deduction provision since section 10A is continued in Chapter III of the Act which carries the title “incomes which do not form part of total income”. The Court was of the opinion that if the Parliament intended to grant the relief under section 10A by way of a deduction, it would have placed such a provision in Chapter VI-A which contains deduction sections 80HHC and 80-IA etc. The fact that, even after its recast, relief was retained in Chapter III indicates that the intention of the Parliament is to grant exemption and not a deduction. Somewhat similar issue reached the Supreme Court in case of Yokogawa India Ltd [2016 (12) TMI 881 - SUPREME COURT]
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