TMI Blog2018 (6) TMI 880X X X X Extracts X X X X X X X X Extracts X X X X ..... ontemplated by Section 10A it has to be understood that the Section embodies a clear enunciation of the legislative decision to alter its nature from one providing for exemption to one providing for deductions. As per Section 10A, the deductions contemplated therein is qua the eligible undertaking of an assessee standing on its own and without reference to the other eligible or non-eligible units or undertakings of the assessee. The benefit of deduction is given by the Act to the individual undertaking and resultantly flows to the assessee. Though Section 10A, as amended, is a provision for deduction, the stage of deduction would be while computing the gross total income of the eligible undertaking under Chapter IV of the Act and not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... forego any ground(s) of appeal at any time before or during the hearing of this appeal. 3. From the above grounds, it is gathered that the main grievance of the department relates to the deletion of addition made by the AO by holding that unabsorbed depreciation/losses of two exempted units are to be reduced from the profit of one other exempted unit while arriving out the amount of exemption u/s 10B of the Income Tax Act, 1961 (hereinafter referred to as the Act) of the profit making unit. 4. During the course of hearing, the ld. Counsel for the assessee submitted that the issue under consideration is squarely covered by the earlier order of the ITAT Delhi Bench D , New Delhi in assessee s own case in ITA No. 729/Del/2014 for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing from the year 2001-02 on completion of the period of tax holiday also virtually works as a deduction which has to be worked out at a future point of time, namely, after the expiry of period of tax holiday. The absence of any reference to deduction under Section 10A in Chapter VI of the Act can be understand by acknowledging mat any such reference or mention would have been a repetition of what has already been provided in Section 10A. The provisions of Sections 80HHC and 80HHE of the Act providing for somewhat similar deductions would be wholly irrelevant and redundant if deductions under Section 10A were to be made at the stage of operation of Chapter VI of the Act. The retention of the said provisions of the Act i.e. Section 80HHC and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at is contemplated for grant of benefit of deduction is the eligible undertaking and that is also how the contemporaneous Circular of the department (No.794 dated 09.08.2000) understood the situation, it is only logical and natural that the stage of deduction of the profits and gains of the business of an eligible undertaking has to be made independently and, therefore, immediately after the stage of determination of its profits and gains. At that stage the aggregate of the incomes under other heads and the provisions for set off and carry forward contained in Sections 70, 72 and 74 of the Act would be premature for application. The deductions under Section 10A therefore would be prior to the commencement of the exercise to be undertaken un ..... X X X X Extracts X X X X X X X X Extracts X X X X
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