TMI Blog2015 (10) TMI 1500X X X X Extracts X X X X X X X X Extracts X X X X ..... ently, it is evident that the basis on which the assessment has sought to be reopened is belied by a plain reading of the provision. The Assessing Officer was plainly in error in proceeding on the basis that because the income is exempted, the loss was not allowable. All the four units of the assessee were eligible under section 10B. Three units had returned a profit during the course of the assessment year, while the Crab Stick unit had returned a loss. The assessee was entitled to a deduction in respect of the profits of the three eligible units while the loss sustained by the fourth unit could be set off against the normal business income. In these circumstances, the basis on which the assessment is sought to be reopened is contrary to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unit eligible for deduction u/s 10A. The assessee has suffered losses with respect to the Gurgaon undertaking which is not 10A undertaking. The assessee claimed deduction under section 10A in respect of profits of the eligible units. The AO recomputed the deduction u/s 10A by setting off of the loss suffered by the assessee in the non-10A unit. 3. On appeal, the ld.CIT(A) has allowed the claim of the assessee by following the judgment of the Hon ble Jurisdictional High Court in the case of Hindustan Unilever Ltd V/s DCIT 325 ITR 102 (Bom) and CIT V/s Patni Computer System Ltd order dated 1.7.2011. 4. We have heard the ld. DR as well as ld. AR and considered the relevant material available on record. At the outset, we notice that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubstituted by the Finance Act of 2000 with effect from April 1, 2001. Prior to the substitution of the provision, the earlier provision stipulated that any profits and gains derived by an assessee from a 100 per cent. export oriented undertaking, to which the section applies shall not be included in the total income of the assessee . The provision, therefore, as it earlier stood was in the nature of an exemption. After the substitution of section 10B by the Finance Act of 2000, the provision as it now stands provides for a deduction of such profits and gains as are derived by a 100 per cent. export oriented undertaking from the export of articles or things or computer software for ten consecutive assessment years beginning with the assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X
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