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TMI Blog2018 (10) TMI 427X X X X Extracts X X X X X X X X Extracts X X X X ..... o. 2179/Mum/2017 for AY 2011-12 wherein the grounds raised by the revenue reads as under: - i) "On the facts and circumstances of the case and in law, the CIT(A) has erred in allowing the deduction u/s.10A of the I.T.Income-tax Act, 1961 ignoring the fact that the assessee had not claimed the same in the validly filed return of income and as such, scrutiny assessment proceedings are not meant for the admission of fresh claim benefitting the assessee." ii) "On the facts and circumstances of the case and in law, the CIT(A) has erred in allowing interest income of Rs. 28,84,58,703/- as profits eligible for deduction u/s.10A & 10AA of the Act without appreciating the fact that the said income was not derived from export of computer software ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by one of the SEZ units was not eligible for set off against eligible profits of SEZ units for the purpose of computation of deduction u/s.10A of the Act." vii) "On the facts and circumstances of the case and in law, the CIT(A) has erred in not appreciating that the deduction u/s 10A is to be allowed after computing the overall profits and gains of business of SEZ units and as such, the AO was justified in setting off the unabsorbed depreciation pertaining to rental business of SEZ units." viii) "The appellant prays that the order of the CIT(A) on the above grounds be set aside and that of the A.O. be restored." ix) "The appellant craves leave to amend or alter any grounds or add a new ground which may be necessary." The assessment f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee claimed exemption u/s 10A / 10AA for Rs. 161.98 crores which was before setting-off of unabsorbed losses of other business units. The assessee contended that the unabsorbed losses of other units was available for set-off against other taxable income. However, not convinced, Ld. AO relying upon CBDT circular File No. 279/Misc./ /M- 116/2012-ITJ dated 16/07/2013 restricted the deduction to business income of Rs. 161.49 Crores as against Rs. 161.98 Crores as claimed by the assessee. 3. Aggrieved, the assessee contested the same with success before Ld. CIT(A) vide impugned order dated 30/12/2016 wherein the deduction against interest income was allowed to the assessee by relying on the decision of this Tribunal rendered in assessee's ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Tribunal in assessee's own case, we dismiss Ground Numbers 1 to 5 as raised under the appeal. 6. The second issue pertains to the issue of set-off of losses before computing deduction under Section 10A / 10AA. The Ld. CIT(A) has provided relief to the assessee by relying on the decision of Hon'ble Bombay High Court rendered in the case of assessee's sister concern for AY 2005-06. The Ld. AR has submitted that revenue contested the aforesaid matter before Hon'ble Supreme Court in bunch of appeals titled as CIT Vs. Yokogawa India Limited [77 Taxmann.com 41] wherein the issue has been decided in favor of the assessee. The copy of the judgments has been placed on record. Upon perusal, we find that the matter has been concluded by Hon'ble co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing that though Section 10A, as amended, is a provision for deduction, the stage of deduction would be while computing the gross total income of the eligible undertaking under Chapter IV of the Act and not at the stage of computation of the total income under Chapter VI. All the appeals shall stand disposed of accordingly. In view of the stated position of law, we find no infirmity in the order of Ld. first appellate authority. Ground Numbers 6 & 7 stand dismissed. The other grounds are general in nature. 7. Resultantly, the revenue's appeal stand dismissed. ITA No. 2115/Mum/2017, AY 2012-13 8. The assessee has similarly been assessed in AY 2012-13 wherein deduction u/s 10A / 10AA against interest income of Rs. 13.66 crores have been d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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