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2021 (8) TMI 300 - AT - Income TaxDeduction u/s. 10AA - unclaimed balances written back, was treated to be a part of export turnover for the purpose of calculation of deduction - HELD THAT:- Assessee had not claimed any deduction u/s.10AA of the Act in the immediately preceding year and the write back of such expenses does not fall under the definition of export turnover given in Explanation to section 10AA of the Act. It remains an admitted fact that in the immediately preceding year, the assessee suffered losses and there is no reason not to believe the explanation on behalf of the assessee that due to such losses, the assessee did not claim any deduction u/s. 10AA of the Act in the immediately preceding year, i.e., F.Y. 2008-09. It is, therefore, clear that in computing the deduction u/s. 10AA for the current year, the write back of the expenses have to be considered as a part of income, inasmuch as, the income on account of write back of unclaimed expenses is accrued to the assessee only due to the export business and there is direct nexus of export business of assessee and the accrual of income, in respect of which, the expenses were shown in the preceding year and such unclaimed expenses were written back for this year. It is not the case of the Revenue that the expenses had no relation to export business of the assessee in the earlier year. We, therefore, conclude that the authorities below are not correct in reducing the deduction u/s.10AA of the Act by such an amount which was written back by the assessee on account of unclaimed balances written back. Set off of the brought forward business losses and unabsorbed depreciation of the eligible unit against profit of the business of eligible unit before allowing deduction u/s.10AA - HELD THAT:- The provisions of section 10A are pari materia with the provisions of section 10AA and therefore, the claim of the assessee for not reducing the brought forward losses from the profit of business of current year before allowing deduction u/s. 10AA is proper and has to be considered in favour of the assessee. For these reasons, we allow ground No. 1 to 3 of appeal. Grant of credit of tax deducted at source - Whether or not it arises from the assessment order, when once the assessee raised the issue, it cannot be brushed under the carpet? - HELD THAT:- DR fairly conceded the request of the assessee to allow the Assessing Officer to verify this fact pleaded by the assessee and, if it is true, to allow the claim of assessee. We, therefore, direct the Assessing Officer to verify the tax credit and allow the same to the assessee.
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