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2020 (2) TMI 659 - HC - Income TaxDeduction u/s 10A / 10B - Aggregation of income - income computed under various heads of income in accordance with the provisions of Chapter IV of the IT Act shall be aggregated in accordance with the provisions of Chapter VI of the IT Act, 1961 - Deduction u/s 10(A) and 10(B) computation - vires of Circular dated 16.07.2013 as per the referring Circular No.7/DV/2013 (File No.279/Misc./M-116/2012-ITJ) challenged - HELD THAT:- Circulars are neither binding on the assessee or on the Court. See M/S RATAN MELTING & WIRE INDUSTRIES [2008 (10) TMI 5 - SUPREME COURT] The clarification given in the impugned circular now stands diluted in the light of the decision of the Hon'ble Supreme Court in Commissioner of Income Tax Vs Yokogawa India Limited [2016 (12) TMI 881 - SUPREME COURT] . wherein held hough Section 10-A, as amended, is a provision for deduction, the stage of deduction would be while computing the gross total income of the eligible undertaking under Chapter IV of the Act and not at the stage of computation of the total income under Chapter VI. The Hon'ble Supreme Court has clarified that its decision rendered in the context of Section 10(A) of the Income Tax Act, 1961 will equally apply to Section 10(B) of the Income Tax Act, 1961. Therefore above circular is no longer binding on the Assessing Officer also in the light of the decision of the Hon'ble Supreme Court in Commissioner of Income Tax Vs Yokogawa India Limited, 2017 2 SCC 1, as the Hon'ble Supreme Court has made it clear that the decision rendered by it in the above case in the context of section 10(A) would equally govern Section 10(B) of the Income Tax Act, 1961. Therefore, there is no necessity for the impugned circular to remain any longer. Accordingly, the impugned circular has to be declared as irrelevant.
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