2020 (6) TMI 165

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..... of the Act even though the assessee has had unabsorbed business loss of previous years besides not commenting on the unabsorbed depreciation. The ld. CIT(A) further observed that nonetheless, considering the fact that brought forward business loses have precedence over brought forward depreciation, the question of giving effect to brought forward depreciation does not arise at all. CIT(A) has held that the assessee is eligible for deduction under section 10B of the Act prior to giving effect to the brought forward depreciation of earlier years and thus, the assessee is eligible to claim deduction under section 10B on profits of business - We find no infirmity in the order passed by the ld. CIT(A) - Decided against revenue. - Shri Inturi R .....

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..... the decision of the Hon ble Supreme Court in the case of CIT v. Himatsingka Seide Ltd. 100 DTR 37, wherein, it was held that the unabsorbed depreciation loss should be adjusted against the income of EOU before claiming exemptions under section 10B of the Act, the Assessing Officer has adjusted the brought forward depreciation loss prior to working out the eligible profit of section 10B undertaking. On appeal, after considering the submissions of the assessee and by following the decision in the case of CIT v. Yokogawa India Ltd. (supra), the ld. CIT(A) has held that the assessee is eligible for deduction under section 10B of the Act prior to giving effect to the brought forward depreciation of earlier years. 3. Aggrieved, the Revenue is in .....

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..... department (No.794 dated 09.08.2000) 22 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 .....

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