TMI Blog2018 (5) TMI 1100X X X X Extracts X X X X X X X X Extracts X X X X ..... had examined the provisions of section 10A of the Act (in which, similar exemption provisions have been made) before and after the amendments. The Court was of the opinion that the said provision provided for an exemption and it was not a deduction provision since section 10A is continued in Chapter III of the Act which carries the title “incomes which do not form part of total income”. The Court was of the opinion that if the Parliament intended to grant the relief under section 10A by way of a deduction, it would have placed such a provision in Chapter VI-A which contains deduction sections 80HHC and 80-IA etc. The fact that, even after its recast, relief was retained in Chapter III indicates that the intention of the Parliament is to gr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d depreciation was required to be set off. Be that as it may, the Assessing Officer objected to the assessee's method of computation of income. He was of the opinion that for the deduction under section 10B, first there has to be the set off of the carry forward losses. The issue eventually reached the Tribunal. The Tribunal, by the impugned judgement, ruled in favour of the assessee by referring to the judgement of Karnataka High Court in case of Commissioner of Income Tax and anr vs. Yokogawa India Ltd reported in 341 ITR 385 as well as the judgement of Supreme Court in case of Commissioner of Income Tax and anr vs. Yokogawa India Ltd reported in 391 ITR 274 . Thereupon, the Revenue has filed this appeal. 3. At the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... observed that the provisions contained in section 80HHC and 80HHE etc. providing for somewhat similar deduction would be wholly irrelevant if deduction under section 10A were to be made at the stage of operation of Chapter VI of the Act. It was observed that the retention of the said provisions under sections 80HHC and 80HHE despite the amendment of section 10A indicated that some additional benefits to eligible section 3 5 10A units, not contemplated by the sections 80HHC and 80HHE were intended by the Legislature and, such a benefit can only be understood that the stage for working out a deductions under sections 10A and 80HHC and 80HHE are substantially different. The Court eventually therefore held and concluded as under: 17. If ..... X X X X Extracts X X X X X X X X Extracts X X X X
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