TMI Blog2017 (6) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... ncluded in the taxable income and accordingly, the loss of exempt unit cannot be set off from income of the non exempt unit. It is an undisputed fact that the assessee had incurred losses from its two units which were eligible for deduction u/s 10B and the said losses have been adjusted against the profit of non-eligible units. We find that this precise issue has been dealt with by the Hon'ble Supreme Court after detailed discussion and analyzing the provisions of section 10A (similar to section 10B) as it stood prior to the amendment by Finance Act 2000 and also after the amendment w.e.f. 1.4.2001. In view of the aforesaid law settled by the Hon'ble Supreme Court, the reasons given by the ld. Assessing Officer to disallow the adjustment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. Assessing Officer noted that the assessee has incurred loss of ₹ 7,33,82,084/- in respect of following two units which were eligible for deduction u/s 10B. SI. No Name of Unit unit Location Loss of the eligible. (Rs.) 1. NIIT-KTWO Minerva, 8, Balaji, Estate, Sudarshan Munjal Marg, Kalkaji, New Delhi 110019 3,88,10,882/- 2. NIIT-ITES 8, Balaji, Estate, Sudarshan Munjal Marg, Kalkaji, 3,45,71,202/- Total 7,33,82,084/- The aforesaid loss was adjusted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e also tried to draw support from the CBDT s circular no. 7 of 2003 and decision of Hon ble Bombay High Court in the case of Hindustan Uniliver Ltd. vs. DCIT reported in 325 ITR 102. He accordingly, disallowed the adjustment of loss of eligible units from the profit of non eligible units. 3. Before the Learned CIT(Appeals) a detailed submission were made by the assessee explaining the entire provision of section 10B and as to why it is not an exemption provision but dealing with the deductions eligible for an assessee. The assessee s detailed submissions have been incorporated by the Ld. CIT (Appeals) from pages 6 to 26 of the impugned order. The Ld. CIT (Appeals) following the decision of assessee s own case for the A.Y. 2008-09, wher ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (similar to section 10B) as it stood prior to the amendment by Finance Act 2000 and also after the amendment w.e.f. 1.4.2001. The relevant observation and the ratio laid down by the Hon'ble Supreme Court reads as under:- The retention of section 10A in Chapter III of the Act after the amendment made by the Finance Act, 2000 would be merely suggestive and not determinative of what is provided by the section as amended, in contrast to what was provided -by the un-amended section. The true and correct purport and effect of the amended section will have to be construed from the language, used and hot merely from the fact that it has been retained in- Chapter III: The introduction 'of the word 'deduction' in section 10A by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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