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TMI Blog2019 (11) TMI 1044X X X X Extracts X X X X X X X X Extracts X X X X ..... nder the Chapter. What the Revenue in essence seeks to attain is to telescope the provisions of Chapter VI-A in the context of the deduction which is allowable u/s 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. ITAT 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 under s. 10A of the IT Act. Hon ble Supreme Court of India in the case of CIT Anrs. Vs. Yokogawa India Ltd. [ 2016 (12) TMI 881 - SUPREME COURT] he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ER PER PARTHA SARATHI CHAUDHURY, JM : This appeal preferred by the assessee emanates from the order of the Ld. CIT(Appeals), Pune-5 dated 16.06.2017 for the assessment year 2011-12 as per the grounds of appeal on record. 2. Though the assessee has preferred multiple grounds of appeal however, the crux of the grievance of the assessee is whether the Ld. CIT(Appeals) erred in holding the action of the Assessing Officer of setting off of unabsorbed business losses before allowing deduction u/s.10A of the Income Tax Act, 1961 (hereinafter referred to as the Act ). The assessee prays in this appeal that the Assessing Officer be directed to allow the deduction u/s.10A of the Act before allowing s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court in the case of Himatsingka Seide Ltd. (supra.) which was upheld by the Hon ble Supreme Court cannot be applied to the amended provisions 10A and 10B. The Assessing Officer relied on the CBDT Circular dated 16.07.2013 and on that basis rejected the assessee s claim for deduction u/s.10A of the Act before setting off of brought forward losses. 4. The matter travelled before the Ld. CIT(Appeals) and detail written submission was filed before him by the assessee wherein the assessee submitted the detailed analysis regarding term of total income in order to bring out the relevant stage of deduction u/s.10A of the Act and set off of unabsorbed depreciation. That further, the assessee relied on the decision of the Hon ble Bom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal before us is the relevant stage when deduction u/s.10A has to be given effect to at stage of computing profits and gains of business at first instance. The Hon ble Bombay High Court in the case of CIT Vs. Black Veatch Consulting (P). Ltd. (supra.) has categorically held that deduction u/s.10A has to be given effect to at stage of computing profits and gains of business i.e. anterior to application of provisions of section 72 which deals with carry forward and set off of business losses. A distinction has been made by the Legislature while incorporating the provisions of Chapter VI-A. Section 80A(1) stipulates that in computing the total income of an assessee, there shall be allowed from his gross total income, in accordance with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ows: This is also more than clear from the contemporaneous Circular No. 794 dated 9.8.2000 which states in paragraph 15.6 that, The export turnover and the total turnover for the purposes of sections 10A and 10B shall be of the undertaking located in specified zones or 100% Export Oriented Undertakings, as the case may be, and this shall not have any material relationship with the other business of the assessee outside these zones or units for the purposes of this provision. 17. If the specific provisions of the Act provide [first proviso to Sections 10A(1); 10A (1A) and 10A (4)] that the unit that is contemplated for grant of benefit of deduction is the eligible undertaking and that is a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of the total income under Chapter VI. All the appeals shall stand disposed of accordingly. Meaning thereby, the Hon ble Apex Court is the view that the deduction u/s.10A of the Act should be allowed qua the eligible undertaking standing on its own without reference to the other eligible or non-eligible unit or undertakings. To put it simply, the profits of the eligible units should be considered on standalone basis. 9. We further observe that it is undisputed fact that otherwise, the assessee is eligible for claiming deduction u/s.10A of the Act. The dispute was at what stage this could be provided to the assessee. That now we have taken guidance from the binding judicial pronouncements as mentioned herein ..... X X X X Extracts X X X X X X X X Extracts X X X X
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