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2019 (9) TMI 1261 - AT - Income TaxComputation of deduction u/s 10AA - HELD THAT:- AO reduced the aforesaid expenditure incurred in foreign currency for providing technical services outside India from the Export Turnover while computing the deduction u/s 10AA of the Act and accordingly determined the deduction u/s 10AA. There is no dispute that the assessee is entitled for deduction u/s 10AA of the Act in the instant case. CIT-A held that items that were excluded from export turnover should also be correspondingly reduced from total turnover also and hence it would not alter the claim of deduction u/s 10AA of the Act for the assessee. Hon’ble Supreme Court in the case of CIT vs HCL Technologies Ltd in Civil [2018 (5) TMI 357 - SUPREME COURT] had held that items that were excluded from export turnover should also be excluded from total turnover. In view of this decision, we find no infirmity in the order of the ld CITA in this regard. Accordingly, the Ground No.1 raised by the revenue is dismissed. Carry forward of losses without setting it off against the income eligible for deduction u/s 10AA - HELD THAT:- High Court in the case of CIT vs Black & Veatch Consulting P Ltd [2012 (4) TMI 450 - BOMBAY HIGH COURT] wherein it was held that section 10A is a deduction provision and not an exemption provision ; that section 10A benefit has to be given effect to at the stage of computing the profits and gains of business; that it is anterior to the application of the provisions of section 72 of the Act which deals with the carry forward and set off of business losses. As held that the deduction u/s 10A of the Act is to be allowed without setting off of carry forward unabsorbed losses and the depreciation from the earlier assessment year or current assessment year either in the case of non-STPI unit or in the case of very same undertaking. CIT-A for the year under consideration directed the ld AO to allow the carried forward of losses without setting it off against the income exigible for deduction u/s 10A. We find that similar views were endorsed by the Hon’ble Supreme Court in the case of PCIT vs Rangsons Electronics Pvt Ltd [2017 (11) TMI 1047 - SC ORDER] and in the case of CIT vs Yokogawa India Ltd [2016 (12) TMI 881 - SUPREME COURT] - Decided against revenue
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