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TMI BlogCircular on Sections 10A, 10AA, 10B and 10BA.X X X X Extracts X X X X X X X X Extracts X X X X ..... he Act were initially placed on statute in 1981 and 1988 respectively, and continued with some modifications and amendments till 31.03.2001. Section 10A as inserted by Finance Act, 1981 read as under: " Section 10A . Special provision in respect of newly established industrial undertakings in the free trade zones.- (1) Subject to the provisions of this section, any profits and gains derived by an assessee from an industrial undertaking to which this section applies shall not be included in the total income of the assessee." 2.1. Similarly section 10B as inserted by Finance Act, 1988 read as under: " 10B : Special provision in respect of newly established hundred percent export oriented undertakings.- Subject to the provisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee...." 3.2 The effect of the substitution of section MA and 10B of the Act has been elaborated in Circular No. 794 dated 9.8.2000 which clearly provides that the new provisions provide for deduction in respect of profits and gains derived by an undertaking from export of articles or things or computer software. 4. Sub-sections (6) of sections 10A and 10B were amended by Finance Act, 2003 with retrospective effect from 1. 4. 2001. Circular no.7/2003 dated 5.9.2003 explains the amendments brought by Finance Act, 2003 . The relevant paragraph is reproduced below: "20. Providing for carry forward of business losses and unabsorbed depreciation to units in Special Economic Zones and 100% Export Oriented Units 20.1 Un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome-tax Act. 5.1 All income for the purposes of computation of total income is to be classified under the following heads of income and computed in accordance with the provisions of Chapter IV of the Act - Salaries Income from house property Profits and gains of business and profession Capital gains Income from other sources 5.2 The income computed under various heads of income in accordance with the provisions of Chapter IV of the IT Act shall be aggregated in accordance with the provisions of Chapter VI of the IT Act, 1961 . This means that first the income/loss from various sources i.e. eligible and ineligible units, under the same head are aggregated in accordance with the provisions of s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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