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2022 (3) TMI 438 - HC - Income TaxRevision u/s 263 by CIT - whether the deduction u/s 10A is to be computed after or before setting off of the losses / depreciation? - Scope of debatable issue - HELD THAT:- This court is of the view that the issue involved herein qua deduction under section 10A, is now, settled by the Hon'ble Supreme Court in CIT and others v. Yokogawa India Ltd [2016 (12) TMI 881 - SUPREME COURT] wherein, it was categorically held that “though section 10A, 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”. Further, it is to be noted that though the decision of the Karnatake High Court [2006 (8) TMI 125 - KARNATAKA HIGH COURT] referred to above on the side of the appellant / Revenue was appealed by the Assessee therein [2013 (10) TMI 823 - SC ORDER] to the supreme court and the said appeal was dismissed by confirming the said view by order, dated 19.09.2013, this court is of the opinion that the view of the Karnataka High Court that the deduction under Chapter VI A has to be made only after or subsequent to the brought forward depreciation allowances, seems to have been taken depending on that particular case and hence, the same cannot be straight away applicable to all the cases. Following the decision of the Hon'ble Supreme Court in CIT v. Yokogawa India Ltd (supra), this court has already decided the similar issue relating to computation of deduction under section 10A in favour of the assessee in the case of CIT v. M/s.Comstar Automotive Technologies (P) Ltd. [2022 (2) TMI 710 - MADRAS HIGH COURT] Thus the substantial question of law relating to computation of deduction under section 10A, will have to be answered in favour of the assessee and against the revenue. However, the issue pertaining to the jurisdiction of the CIT to revise the assessment order under section 263, is left open. Accordingly, the tax case appeal stands disposed of
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