<h1>Madras High Court Rules: Unabsorbed Depreciation Must Be Deducted Before Chapter VI-A Exemptions Under Income Tax Act.</h1> The issue concerns whether unabsorbed depreciation must be deducted before claiming exemptions under Chapter VI-A of the Income Tax Act, 1961. The assessee claimed a deduction under section 80HHC before accounting for unabsorbed depreciation, leading to a higher deduction. The Assessing Officer reopened the assessment, disallowing the higher deduction, and adjusted it after setting off the unabsorbed depreciation. The ITAT sided with the assessee, allowing the deduction before unabsorbed depreciation. However, the Madras High Court overturned this, agreeing with the tax department that Chapter VI-A deductions should be calculated after deducting unabsorbed depreciation from the Gross Total Income.