SEZ unit profits deduction allowed before offsetting losses; interest on delayed TDS payments not deductible.

The assessee derived profits from an SEZ unit before depreciation. The issue was whether business losses of earlier years should be reduced from eligible profits for claiming deduction u/s 10AA. It was held that the Supreme Court in Yokogawa India Ltd. case decided that deduction u/s 10A is to be allowed while computing gross total income, not at the stage of computing total income under Chapter VI. The Bombay High Court in Black & Veatch Consulting and Techno Tarp cases also held that Section 10A deduction for eligible units should be allowed before setting off brought forward depreciation and losses. Hence, the assessee's appeal was allowed on this ground. Regarding disallowance of interest on delayed TDS payment u/s 37, it was held that ..... .....

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