TMI Blog2010 (12) TMI 768X X X X Extracts X X X X X X X X Extracts X X X X ..... e any profits left for allowing the deduction computed u/s 10A - Decided in the favour of assessee - ITA Nos. 1141 and 1142/Bang/2009 - - - Dated:- 16-12-2010 - George George K, A. Mohan Alankamony, JJ. Preethi Garg, CIT-III, for the Appellant Sathya Narayan Murthy and Sachin Mehta, CA, for the Respondent ORDER George George K: These appeals of the revenue and the cross objections of the assessee are directed against the consolidated order of the CIT(A) dated 22/09/2009 for the asst. years 2005-06 and 2006-07. 2. Since the appeals and the cross objections pertained to identical issue, they are heard together and disposed of by this consolidated order for the sake of convenience and brevity. 3. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave decided the revenue's appeal in favour of assessee, this cross objection is dismissed as infructuous. 4.1 In the result, the cross objection (No.23/2010) filed by the assessee is dismissed. 5. The facts pertaining to asst. year 2006-07 (ITA No.1142/09) are as follows:- The return of income was filed on 30.11.2006 declaring a loss of Rs.8,13,35,023/-. The assessee company had units eligible for deduction u/s 10B as well as units not eligible for deduction u/s 10B. In the return of income filed, the assessee had computed the profits of units eligible for deduction u/s 10B and claimed deduction thereof. The losses of units not eligible for deduction u/s 10B was separately computed and carried forward. The Assessing Officer comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /B/07 decision dated 29.8.2008-AY 2004-05-Bangalore Tribunal. 9.1 Deduction u/s 10A is available in respect of each undertaking. The provisions of sections 28 to 44D are to be applied to each undertaking and not each business. This is because, section 10A is undertaking specific. That, the section is undertaking specific is discernible from the following:- - Under sub-section 1 profits derived by the undertaking from the export of articles and things qualify for deduction; - Sub-section 2 prescribes certain conditions to be fulfilled by the undertaking for being eligible to the benefits of section 10A; - Under sub-section 4, it is profits of the business of the undertaking that qualify for deduction. Similarly, the definitio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rcumscribed by the conditions mentioned u/s 80AB of the Act. Sections 80A and 80AB are not applicable to the deduction u/s 10A/10B of the Act. For taking the above proposition, we are fortified by the order of the Special Bench of the Tribunal in the case of Scientific Atlanta India Technology Ltd. wherein at para 62, it was observed as follows:- "It is needless to say that section 10A is not included in Chapter VI-A. Hence, as long as section 10A is not falling under Chapter VI-A, section 80AB cannot be applied". Further it was observed thus:- "That sections 80A and 80AB fall under Chapter VI-A which chapter is to be applied after arriving at the gross total income, whereas section 10A falls under Chapter III which is to be giv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Tribunal at para 60 of its order read as follows:- "Even though it is a deduction to be given, it is to be deducted while arriving at the profits of business and profession and not from the gross total income as envisaged under Chapter VI-A. Thus, we hold that deduction under section 10A under Chapter III of the Income-tax Act is to be granted while computing the profits and gains of business and profession itself and not from the gross total income". 9.6 Further, the Special Bench of Tribunal at paa 65 of its order held that when assessee is having more than one Industrial undertaking, the profits and gains of that 'particular undertaking', which qualify for deduction u/s 10A is being separately calculated. The relevant find ..... X X X X Extracts X X X X X X X X Extracts X X X X
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