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TMI Blog2013 (4) TMI 757X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act. Facts being identical, respectfully following the decision of the Tribunal, we direct the AO to treat the interest from fixed deposits as income falling under the head “Profits & gains of business or profession” eligible for deduction u/s. 10A of the Act. Computation of profits of the business of the undertaking and amount of deduction u/s. 10A - Held that:- We direct the AO to allow deduction u/s. 10A before setting of the brought forward unabsorbed depreciation and business loss. Charging of interest u/s. 234B - income of the assessee is taxable under the provisions of Sec. 115JB - Held that:- The issue has been decided against the assessee by the Hon’ble Supreme Court in the case of JCIT Vs Rolta India Ltd. (2011 (1) TMI 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ld. Counsel drew our attention to 3 decisions namely (i)Moser Baer India Ltd. Vs DCIT (2007) 17 SOT 510(Del), (ii) DCIT Vs Roxy Investments (P) ltd (2008) 24 SOT 227 (Del) and (iii) the decision of the Hon ble Supreme Court in the case of Ajanta Pharma Ltd Vs CIT (2010) 327 ITR 305. 5. The Ld. Departmental Representative fairly conceded that the issue stands covered in favour of the assessee. 6. We have carefully perused the orders referred to by the Ld. Counsel for the assessee in the case of Moser Baer India Ltd (Supra) in which it has been held that for determining of Book Profit any mode and manner of computation of total income under Act has not to be applied and reference is to be made only to profit and loss account prepared i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see s contention that interest on deposits is chargeable to tax under the head Profits gains of business or profession and therefore eligible for deduction u/s. 10A of the Act. 8. It is the say of the Counsel that the issue is covered by the decision of the Tribunal in assessee s own case for A.Y. 2004-05 and to substantiate his claim, the assessee submitted the decision of the Tribunal in assessee s own case reported in 33 SOT 327. Drawing our attention to Para-11 of the said order of the Tribunal, the Ld. Counsel for the assessee submitted that the Tribunal has directed to tax the interest under the head Profits gains of business or profession . 9. The Ld. Departmental Representative relied upon the findings of the lower autho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 348 ITR 72 (Bom). 14. The Ld. Departmental Representative fairly conceded that the issue stands covered in favour of the assessee. 15. We have carefully perused the facts of the vase vis-a-vis decision of the Hon ble Jurisdictional High Court (supra). The question before the Hon ble Jurisdictional High Court was - whether on the facts and in the circumstances of the case and in law, the Income Tax Appellate Tribunal was correct in holding that the brought forward unabsorbed depreciation and losses of the unit the income which is not eligible for deduction u/s. 10A of the Act cannot be set off against the current profit of the eligible unit for computing the deduction u/s. 10A of the I.T. Act. 16. The Hon ble High Court thus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is to telescope the provisions of Chapter VI-A in the context of the deduction which is allowable under section 10A, which would not be permissible unless a specific statutory provision to that effect were to be made. In the absence thereof, such an approach cannot be accepted. In the circumstances, the decision of the Tribunal would have to be affirmed since it is plain and evident that the deduction under section 10A has to be given at the stage when the profits and gains of business are computed in the first instance. So construed, the appeal by the Revenue would not give rise to any substantial question of law and shall accordingly stand dismissed. There shall be no order as to costs. Respectfully following the decision of the Hon ..... X X X X Extracts X X X X X X X X Extracts X X X X
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