2012 (4) TMI 450

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....cy J. Pardiwala, Sr. Advocate with Mr.Jas Sanghavi i/b. PDS Legal for respondents.   ORAL JUDGMENT (PER DR.D.Y.CHANDRACHUD, J.)   1. This appeal by the Revenue under Section 260A of the Income Tax Act, 1961 arises from a decision of the Income Tax Appellate Tribunal dated 20 April 2011. The Assessment Year to which the appeal relates is AY 2006-07. The following question of law ....

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.... will have to be made in respect thereof while computing the income under the head `Profits and gains of business and profession'. In other words, the deduction in respect of the profits eligible under Section 10A of the Act is required to be made at the stage of computing the income under the head `Profits and gains of business or profession'." Nonetheless, while computing the total income of ....

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....ised that the provision contained in Section 10A is not an exemption but a deduction under Chapter III. Following that decision, the Tribunal held that the deduction under Section 10A in respect of the allowable unit under Section 10A has to be allowed before setting off brought forwarded losses of a non 10A unit. 3. Section 10A is a provision which is in the nature of a deduction and not an ex....

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....f 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 and subject to the provisions of the Chapter, the deductions specified in Sections 80C to 80U. Section 80B(5) defines for the purpo....