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2018 (6) TMI 880 - AT - Income TaxDeduction u/s 10B - Disallowance of unabsorbed depreciation/losses of two exempted units from the profit of one other exempted unit u/s 10B - Held that:- An identical issue has been adjudicated in favour of the assessee in assessee’s own case in [2017 (4) TMI 1357 - ITAT DELHI] where the judgment of the Hon’ble Supreme Court in the case of CIT & Another Vs M/s Yokogawa India Ltd. [2016 (12) TMI 881 - SUPREME COURT] held that the introduction of the word ‘deduction’ in Section 10A by the amendment made by Finance Act,2003, in the absence of any contrary material, and in view of the scope of the deductions contemplated by Section 10A it has to be understood that the Section embodies a clear enunciation of the legislative decision to alter its nature from one providing for exemption to one providing for deductions. As per Section 10A, the deductions contemplated therein is qua the eligible undertaking of an assessee standing on its own and without reference to the other eligible or non-eligible units or undertakings of the assessee. The benefit of deduction is given by the Act to the individual undertaking and resultantly flows to the assessee. 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 - hence appeal of the department is dismissed - Thus unabsorbed depreciation of one eligible unit cannot be adjusted with the profit of the other eligible unit, while calculating the deduction available to the other eligible unit under Section 10B - Decided in favor of assessee.
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