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2020 (6) TMI 165 - AT - Income TaxDeduction u/s 10B computation - Adjusting the brought forward depreciation loss prior to working out the eligible profit of section 10B - HELD THAT:- Referring toYokogawa India Ltd. case [2011 (8) TMI 845 - KARNATAKA HIGH COURT] as confirmed by Supreme court [2016 (12) TMI 881 - SUPREME COURT] CIT(A) has observed that the profit of the undertaking should be computed independently before adjusting any carried forward business. The profit thus arrived should be given benefit under eligible sections 10A/10B of the Act even though the assessee has had unabsorbed business loss of previous years besides not commenting on the unabsorbed depreciation. The ld. CIT(A) further observed that nonetheless, considering the fact that brought forward business loses have precedence over brought forward depreciation, the question of giving effect to brought forward depreciation does not arise at all. CIT(A) has held that the assessee is eligible for deduction under section 10B of the Act prior to giving effect to the brought forward depreciation of earlier years and thus, the assessee is eligible to claim deduction under section 10B on profits of business - We find no infirmity in the order passed by the ld. CIT(A) - Decided against revenue.
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