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TMI Blog2017 (4) TMI 1357X X X X Extracts X X X X X X X X Extracts X X X X ..... e to the other eligible unit under Section 10B of the Act. CIT(A) has also rightly rejected the contention of the assessee that such unabsorbed depreciation should be set off against the income of the assessee under the head “Income from other sources”. Such unabsorbed depreciation of Section 10B eligible unit can only be carried forward and set off only after the tax holiday period is over. - I.T.A .No. 6578/DEL/2013 And I.T.A .No. 729/DEL/2014 - - - Dated:- 28-4-2017 - SHRI R. S. SYAL, VICE PRESIDENT AND MS SUCHITRA KAMBLE, JUDICIAL MEMBER For The Appellant : Sh. Vijay Kumar Jindal, CA For The Respondent : Sh. Umesh Chand Dubey, Sr. DR ORDER PER SUCHITRA KAMBLE, JM These two appeals are filed by the As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be on the safer side as the same was added by the AO in the scrutiny assessment for the assessment year 2009-10. On appeal by the assessee, the issue has now been resolved in favour of the assessee company for the assessment year 2009-10. The assessee company requested to the AO to finalize the assessment on the book profits without adding the disallowance u/s 14A. The request of the assessee has been rejected. 5. The AO rejected the claim of the assessee regarding setting off of the unabsorbed depreciation of the loss making exempted unit with the income from other sources amounting to ₹ 36,49,808/- of the same assessment year. 6. Being aggrieved by the Assessment order, the assessee filed appeal before the CIT(A). The CIT( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Accordingly, 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. 9. The Ld. AR submits that the expression total income of the assessee in Section 10A can be understood as total income of the undertaking . The losses/ unabsorbed depreciation of the 10B unit are not to be set off against the profits of the other 10B unit before deduction u/s 10B are affected. The provisions of Sub-section 6 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 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 80HHE, despite the amendment of Section 10A, in our view, indicates that some additional benefits to eligible Section 10A units, not contemplated by Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 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 under Chapter VI of the Act for arriving at the total income of the assessee from the gross total income. The somewhat discordant use of the expression tota ..... X X X X Extracts X X X X X X X X Extracts X X X X
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