TMI Blog2016 (9) TMI 1576X X X X Extracts X X X X X X X X Extracts X X X X ..... s directed to allow set off of the other income with business loss determined u/s 10A of the Act. - Decided in favour of assessee. - I.T.A.No.589/Mds/2015 - - - Dated:- 23-9-2016 - Shri Abraham P. George, Accountant Member And Shri G. Pavan Kumar, Judicial Member Appellant by: Shri R. Vijayaraghavan, Advocate Respondent by: Shri A.V. Sreekanth, JCIT ORDER G. Pavak Kumar, This appeal of the assesseee is directed against the order of the Commissioner of Income-tax (Appeals)-15, Chennai, dated 12.1.2015 in I.T.A.No.1049/13-14/A-15 for assessment year 2003-04 passed u/s 143(3) and 250 of the Income-tax Act, 1961(I short the Act ). 2. The assessee has raised sole substantive ground that the CIT(A) erred in up ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terest on fixed deposits with bank and miscellaneous income, the above amount was subjected to taxation alongwith capital gains and the total income was determined at ₹ 23,72,500/- vide order u/s 143(3) r.w.s 147 of the Act passed on 30.10.2006. 4. Aggrieved the assessee has filed appeal before the CIT(A). In the appellate proceedings, ld. AR argued the grounds and reiterated the submissions made in the assessment proceedings in respect of set off denied by the Assessing Officer. He submitted that the Assessing Officer has segregated income from bank deposits as income from other sources where this income is treated as part of income from business or profession. With this calculation, the Assessing Officer has arrived at business l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Assessing Officer. 5. Aggrieved, the assessee is in appeal before the Tribunal.Before us, ld. AR reiterated the submissions made in the assessment proceedings, appellate proceedings and explained the facts and also the provisions, amendments prior to assessment year 2001-02. The ld. AR further argued that the CIT(A) erred in denying set off of adjustment of income against the business loss of 10A unit. There is a change in the nature of the exemption applicable for assessment year 2001-02. Where deduction u/s 10A in respect of profits and gains are eligible to be deducted from total income and provisions of sec. 70(1) are applicable. The judgment relied by the CIT(A) is in respect of set off of loss from 10A unit with the profit of 10A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that it is in the nature of exempted business loss. As against the above, the ld. AR submitted that under the provisions of sec. 70(1), set off of loss for one source against income from another source under the same head of income is allowed. By applying this provision the assessee-company has adjusted and set off the other income including the interest income with the business loss u/s 10A of the Act and filed the return of income. Further there was an amendment to this provision where deduction u/s 10A has to be treated as a deduction from total income, therefore, the assessee by applying the provision has claimed the set off against the business loss. The decisions relied by the ld. AR are in support of his arguments wherein held that t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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