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TMI Blog2016 (4) TMI 470X X X X Extracts X X X X X X X X Extracts X X X X ..... . CIT(A) has erred in confirming the order of the AO on setting off the b/f losses and unabsorbed depreciation of the unit amounting to Rs. 2,91,37,636/- before computing the profits eligible for deduction u/s 10A of the Act. b. The ld.CIT(A) has erred in placing reliance on Cambay Electric Supply Industrial Co. Vs CIT(SC) 113 ITR 84, which pertains to claiming of deduction under section 80E placed under chapter VI-A of the IT Act.. c. The ld.CIT(A) erred in not considering the recent decision of the jurisdictional High Court in the case of Yokogawa India Ltd. ITA NO.78/2011 dated 09-08-2011. B. Set off of unabsorbed depreciation against income from other sources under normal provisions of the Act. a. The ld.CIT(A) erred in holding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the action of the AO before the ld. CIT(A). The ld.CIT(A) has confirmed the action of the AO by following the judgment of the Hon'ble jurisdictional High Court in the case of CIT Vs M/s Himatasingike Seide Ltd. 286 ITR 255(Kar.) 4. Before us, the learned AR of the assessee submitted that the issue is covered by the latest judgment of the Hon'ble jurisdictional High Court in the case of CIT Vs M/s Yokogawa India Ltd (341 ITR 385). He has further submitted that following the said decision of the Hon'ble High Court, the Co-ordinate Bench of this Tribunal in case of M/s Safran Aerospace India Pvt.Ltd Vs DCIT in ITA No.1261(B)/2010 vide order dated 31-12-2014 has decided the issue in favour of the assessee. 5. On the other hand, learned DR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an assessee which was 100% export oriented unit in terms of sec.10B of the Act and was claiming exemption u/s 10B. In the case of the said assessee, unabsorbed depreciation available to the assessee in the assessment year 1988-89 was carried forward to the assessment year 1994-95 (relevant assessment year) and was claimed by the assessee to be adjusted against income from other sources, thereby reducing the assessee's income for assessment purposes at 'nil'. The AO accepted the said claim of the assessee and assessed the total income at 'nil'. However, the Commissioner of Income-tax (CIT) revised the order u/s 263 stating that the order passed by the AO was erroneous and prejudicial to the interests of the Revenue as exemption u/s 10B was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed instruments and it had filed return of income declaring loss. During the assessment proceedings u/s 143(3), the AO had observed that the assessee had claimed exemption u/s 10A for its STPI unit before set off of brought forward losses and depreciation. The AO, therein, had also observed that 10A benefit can be given only after adjusting brought forward loss and depreciation from the total income of the assessee. Aggrieved, the assessee preferred an appeal before the CIT(A) who granted relief to the assessee and on further appeal by the Revenue to the Tribunal, it was held that business loss of other units cannot be set off against the profits of the undertaking engaged in the business of computer software for purposes of determination of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in 238 ITR 113. The decision of the High Court in the case of Himatsingike Siede (supra) is dated 4th August 2006 whereas the decision of the Hon'ble High Court in the case of Yokogawa India Ltd.(supra) is dated 9th August, 2011. As regards the dismissal of the SLP by the Hon'ble Supreme Court against the decision of the Hon'ble Karnataka High Court in the case of Himatsingike Siede (supra) is concerned, we find that the Hon'ble Supreme Court has dismissed the appeal in limine without laying down any ratio decidendi therein and, therefore, as held by the Hon'ble Apex Court in the case of Indian Oil Corporation Ltd. vs. State of Bihar & others, reported in 167 ITR 897, the decision of the Hon'ble Karnataka High Court in the case of Yokogawa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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