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2022 (9) TMI 766 - AT - Income TaxDeduction u/s 10A - set off of loss of STP units against normal business income, while computing deduction u/s 10A - HELD THAT:- We find that this issue is now settled in favour of the taxpayer by the decision of Hon’ble Supreme Court rendered in CIT v/s Yokogawa India, [2016 (12) TMI 881 - SUPREME COURT] wherein it has been held that deductions contemplated under section 10A of the Act is qua the profits of eligible undertaking of an assessee on a stand-alone basis and without reference to the other eligible or non-eligible units or undertakings of the assessee. Thus grounds raised by the Revenue are dismissed. Deduction u/s 80HHE - setting off brought forward losses for the purpose of computing business profits under the said section - HELD THAT:- We find that the Co-ordinate Bench of the Tribunal in assessee”s own case in M/s Zensar Technologies Ltd. [2022 (5) TMI 1060 - ITAT MUMBAI] held that CIT grossly held in holding with the profits of the business for the year under consideration has to be reduced by the brought forward losses from earlier year for the purpose of computing profit eligible deduction u/s.80HHE. Computation of deduction u/s 10A of the Act vis-à-vis the transfer pricing adjustment - assessee submitted that no deduction under section 10A of the Act has been allowed in respect of transfer pricing adjustment by the AO order passed under section 143(3) and thus, the impugned addition amounts to double addition in the present case - HELD THAT:- We direct the Assessing Officer to comply with the directions of the CIT(A) on this issue and delete the addition in case of double addition after necessary verification. As a result, ground no.2 is allowed for statistical purpose.
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