9911796707
TMI Blog2011 (12) TMI 315X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee have been allowed. 2. The material facts of the case leading up to this appeal are as follows:- 2.1 The Assessing Officer, by order dated 03.03.2005, processed the return filed by the respondent for the assessment year 2002-2003, which was filed on 31.10.2002 declaring total income as nil after claiming exemption under Section 10A and set off of unabsorbed depreciation carried forward from Assessment years 1993-1994 and 1994-1995 and a book profit of Rs. 77,34,727/- under Section 115JB of the Income Tax Act, 1961 (hereinafter referred to as 'the Act'). The return was processed under Section 143(1) of the Act on 28.02.2003 and it was found that the assessee had treated income as business income and had claimed exemption under Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f of unabsorbed depreciation relating to assessment years 1993-1994 to 1994-1995 against the business income of the assessment year 2002-2003 by invoking the provisions of Section 10A (6) of the Act. The relevant assessment year for the purpose of Section 10A(6) of the Act is not the present assessment year 2002-2003, but the assessment year 2003-2004 i.e., the assessment year which immediately follows the block of ten assessment years from assessment years 1993-1994 to 2002-2003. Therefore, the action of the Assessing Officer in not setting off of carried forward unabsorbed depreciation, before allowing exemption under Section 10A of the Act was erroneous and contrary to the provisions of law and in the assessment year 2002-2003, there rem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... revisional authority was justified as the subject matter of revision was not pending in appeal and the Tribunal was not justified in holding that the issue regarding set off of unabsorbed depreciation, which was decided by the revisional authority was neither decided nor adjudicated by the Appellate authority in appeals and the impugned order passed by the Tribunal is liable to be set aside. 5. The learned senior counsel appearing for the respondent submitted that the only question of law that arises for consideration in these appeals is as to whether the profit for the purpose of deduction under section 10A of the Act should be allowed before or after deduction for set of of unabsorbed loss and depreciation. The learned senior counsel sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was correct in holding that the deduction under Section 10A or 10B of the Act during the current assessment year has to be allowed without setting off brought forward unabsorbed losses and the depreciation from earlier assessment year or current assessment year either in the case of non-STP units or in the case of the very same undertaking?" In the said ITA No. 78/2011, this Court has held as follows:- "31. As the income of 10A unit has to be excluded at source itself before arriving at the gross total income, the loss of non 10A unit cannot be set off against the income of 10-A unit under Section 72. The loss incurred by the assessee under the head profits and gains of business or profession has to be set off against the profits and gai ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
