TMI Blog2015 (12) TMI 1184X X X X Extracts X X X X X X X X Extracts X X X X ..... or exemption under Section 10A of the Act. The ineligible business income will be available for adjustment of brought forward losses of the earlier years - Decided in favour of the Assessee - ITA 828/2015 - - - Dated:- 14-12-2015 - S. Muralidhar And Vibhu Bakhru, JJ. For the Appellant : Mr. G.C. Srivastava with Mr. Daksh S. Bhardwaj and Mr. Anubhav Jain, Advocates For the Respondent : Mr. Rahul Chaudhary, Senior Standing counsel with Mr. Ruchir Bhatia, Advocate ORDER 1. This appeal by the Assessee under Section 260A of the Income Tax Act, 1961 ( Act ) is directed against the order dated 27th February 2015 passed by the Income Tax Appellate Tribunal ( ITAT ) in ITA No. 104/Del/2011 for the Assessment Year ( AY ) 2003-04 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AY in question. This loss was accordingly set off against the business income of ₹ 13,11,744. The return filed by the Assessee was picked up for scrutiny. 5. The Assessing Officer ( AO ) by the order dated 29th March 2006 held that the income for the purposes of Section 10A of the Act should be deducted from the business income but only after set off of the brought forward losses. Accordingly, the income of the Assessee was recomputed as ₹ 67,69,267 and the tax liability was worked out as ₹ 15,40,579. In other words, the business loss brought forward from AY 2002-03 in the sum of ₹ 72,70,264 was reduced from the gross income before computation of the deduction under Section 10A of the Act. 6. After the Commissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion provision and not an exemption provision. 9. At the outset it requires to be noticed that the issue involved in the decision of the Karnataka High Court in Commissioner of Income Tax v. Himatsingke Seide Ltd. (supra) was regarding adjustment of unabsorbed depreciation against the exempt income under Section 10B of the Act. That is not the issue that arises in the present case. Secondly, a CBDT circular cannot possible override a decision of the Court. 10. Thirdly, the Court finds that the decision of this Court in Tei Technologies Pvt. Ltd. (supra) has categorically held that Section 10A although worded as deduction provision is essentially and in substance an exemption provision. The Court has clarified that the implication of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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