Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (3) TMI 541 - AT - Income TaxEligible units claiming deduction u/s 10A/10AA - allowed without set off of business loss or not is not a res-integra - HELD THAT:- Hon’ble Supreme Court, in the case of CIT vs Yokogawa India Limited [2016 (12) TMI 881 - SUPREME COURT] has clearly held that the deduction u/s 10A would be prior to the commencement of the exercise to be undertaken under Chapter VI of the Act, for arriving at the total income of the assessee from the gross total income. The Hon’ble Supreme court, further held that though, section 10A, as amended is a provision for deduction, a 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 of the Act. The Hon’ble Bombay High court in the case of Black and Veatch Consulting Pvt.Ltd.vs CIT [2012 (4) TMI 450 - BOMBAY HIGH COURT] has upheld similar position of law. The ITAT, Mumbai benches in asseesee own case for earlier years has held that the deduction u/s 10A of the Act, has to be given at the stage, when the profits and gains of the business is computed in the first instance. The sum and substance of ratio laid down by the Hon’ble Supreme Court and Hon’ble Bombay High Court, is that the profit of eligible units claiming deduction u/s 10A/10AA of the Act, shall be allowed without setting off of losses of other units. Therefore, we are of the considered view that the AO, as well as the Ld.CIT(A) were erred in set off of loss of business from the profit of eligible units claiming deduction u/s 10AA before allowing deduction provided u/s 10AA of the Act, 1961. Hence, we direct the AO to allow deductions towards profit of eligible units u/s 10AA of the Act, without set off of loss of non eligible/other units. Appeal filed by the assessee is allowed.
|