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2019 (4) TMI 369 - AT - Income TaxDeduction u/s 10AA - assessee had claimed the dedction without setting off of unabsorbed depreciation - AO and DRP had restricted the same by first setting off of unabsorbed depreciation from business income and then allowing deduction u/s 10AA - HELD THAT:- Allowability of deduction under section 10AA of the Act before setting off of unabsorbed depreciation is settled by the ratio laid down by the Apex Court in the case of CIT & Anr. Vs. M/s. Yokogawa India Ltd. [2016 (12) TMI 881 - SUPREME COURT]. The assessee is entitled to claim deduction under section 10AA of the Act before setting off of unabsorbed depreciation from business income. Hence, the ground of appeal No.2 raised by assessee is allowed. Income from other source - interest on income tax refund which was then clubbed with income from business - HELD THAT:- Referring to the statement of total income filed for the year under consideration and the perusal of the same clearly reflects that income from other sources comprised of interest on income tax refund of ₹ 55,244/-, which was then clubbed with income from business at ₹ 4,51,295/- and the gross total income was declared at ₹ 5,06,539/-. This is a mistake at the end of Assessing Officer. Accordingly, we direct him to adopt the income from other sources at ₹ 55,244/-. The ground of appeal No.3 raised by assessee is thus, allowed.
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