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2020 (10) TMI 666 - HC - Income TaxLosses of 80IC unit set off against the profit of the other non 80IC units - substitute Section 10B with Section 80-IC - Whether the decision in KEI Industries Ltd.[2015 (3) TMI 618 - DELHI HIGH COURT] was rightly relied on by the Tribunal while allowing the appeal filed by the Revenue, as the conditions contained in Section 80-IC and that of Section 10B are pari materia and the legal principle has been rightly applied by the Tribunal to say that the loss suffered by the assessee in an unit is entitled to exemption under Section 10B cannot be set off against the income from any other unit not eligible for such exemption? - HELD THAT:- The question would be, can it be done especially, when the Tribunal has not assigned any reasons as to how it came to the conclusion that the decision in KEI Industries Ltd (supra) would squarely apply to the assessee's case and above all, why the finding returned by the CIT(A) was erroneous. Decision rendered by the Hon'ble Supreme Court in the case of Yokogawa India Ltd. [2016 (12) TMI 881 - SUPREME COURT], which was rendered by the Hon'ble Supreme Court much after the impugned decision by the Tribunal. As argued before us by the assessee that Section 10B occurs in Chapter 3 of the Act, which deals with income not to be included in the total income and when income is not to be included in the total income, loss should also be excluded from the total income and cannot be set off against the income from other unit. Further, it is argued that even in the case of Section 10A, the provision was converted into a provision granting deduction and not exemption of income and in several cases, it has been held that profit from Section 10A unit can be set off against the loss of other units. In decision in the case of Mohan Breweries and Distilleries Ltd. [2007 (10) TMI 354 - ITAT MADRAS-B] and Rajapalayam Mills Ltd. vs. CIT [1978 (10) TMI 4 - SUPREME COURT] wherein the issue was that loss of unit entitled to deduction under Chapter VI-A, which has been set off against such income in the respective year, cannot be notionally carried forward. Tribunal did not assign any reason as to why it was satisfied that the order of the CIT(A) is erroneous, we deem it appropriate to set aside the order passed by the Tribunal and remand the matter for fresh consideration in accordance with law.
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