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2020 (1) TMI 291 - AT - Income TaxRevision u/s 263 - deduction u/s 10A - view of the PCIT that deduction u/s 10A should have been allowed by the AO after considering the business loss and carry forward the business loss of the assessee and since AO had accepted the return of income without giving effect to carry forward losses, excess deduction u/s 10A of the Act was erroneously allowed by the AO - HELD THAT:- We find that Hon’ble Apex Court in the case of CIT Vs. Yokogawa India Ltd. [2016 (12) TMI 881 - SUPREME COURT] held that the deduction u/s 10A of the Act would be prior to the commencement of the exercise to be taken under Chapter IV for arriving at the total income of the assessee from the gross total income. It further held that though Section 10A of the Act as amended provision for deduction, the stage of deduction would be while computing the gross total income of the eligible undertaking under Chapter IV and not at the stage of computation of the total income under Chapter VI. In view of the aforesaid decision of Hon’ble Apex Court, we are of the view that Ld. PCIT was not justified in invoking the provisions of Sec.263 of the Act so as to term the order of AO to be erroneous and prejudicial to the interest of Revenue. We therefore set aside the order of Ld. PCIT. Thus, the grounds of the assessee are allowed.
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