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2023 (2) TMI 191 - ITAT CHENNAIDeduction u/s 10B - directors of STPI as competent authority for granting approval or not? - HELD THAT:- As following the decision of in the case of Indus Teqsite (P) Ltd vs DCIT [2021 (9) TMI 473 - MADRAS HIGH COURT] we are of the considered view that, the assessee is entitled for deduction u/s. 10B towards profit derived from STPI unit. CIT(A) after considering the relevant facts has rightly allowed deduction as claimed by the assessee and thus, we are inclined to uphold the findings of the CIT(A) and reject ground taken by the Revenue. Method of computation of deduction u/s. 10B of the Act, although the Revenue is not disputing the ratio laid in the case of CIT vs Yokogawa India Ltd [2016 (12) TMI 881 - SUPREME COURT] with regard to the computation of eligible profit before allowing set off of losses of other units, but disputed the present case in light of different sections under which said deduction has been claimed. According to the Revenue, the Hon’ble Supreme Court has considered the provisions of section 10A, whereas in the present case, the assessee has claimed deduction u/s. 10B - In our considered view, the arguments of the Revenue is fallacious for the simple reason that provisions of section 10A & 10B of the Act both are deduction provisions which operates under same set of terms and conditions and thus, the ratio laid down in the case of CIT vs Yokogawa India Ltd [2016 (12) TMI 881 - SUPREME COURT] squarely applies for computation of eligible profit in terms of provisions of section 10B of the Act also - there is no error in the reasons given by the ld. CIT(A) to direct the AO to compute eligible profit of unit claiming deduction u/s. 10B of the Act, without allowing set off of losses of other unit or brought forward losses of earlier years, and thus, we reject ground taken by the revenue on this issue also. Decided against revenue.
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