TaxTMI 
TaxTMI 
2014 (1) TMI 1492
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....s right in holding that deduction claimed by the assessee u/s. 10A of the I.T Act in respect of STP Rajkot unit should be allowed without adjustment of losses of other units and without adjustment of brought forward losses/unabsorbed depreciation of either years ?" {ii} "Whether in the circumstances and the facts of the case and in law, the Appellate Tribunal is right in deleting the addition of Rs. 83,01,730/= made on account of disallowance of claim of deduction u/s. 10A of the I.T Act ?" {iii} "Whether in the circumstances and the facts of the case and in law, the Appellate Tribunal is right in holding that the income and expenditure attributable to eligible undertaking u/s. 10A of the I.T Act has to be allowed in the case of the a....
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....vision which is in the nature of a deduction and not an exemption. This was emphasized in a judgment of a Division Bench of this court, while construing the provisions of section 10B, in Hindustan Unilever Ltd. vs. Deputy CIT [2010] 325 ITR 102 (Bom) at paragraph 24. The submission of the Revenue placed its reliance on the literal reading of section 10A under which a deduction of such profits and gains as are derived by an undertaking from the export of articles or things or computer software for a period of ten consecutive assessment years is to be allowed from the total income of the assessee. The deduction under section 10A, in our view, has to be given effect to at the stage of computing the profits and gains of business. This is anteri....
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.... Income Tax7 vs. Schmetz India (P.) Ltd., [2012] 211 Taxman 59=[2012] 26 taxman.com 336 (Bom). 6. Having perused the statutory provision contained in Section 10A of the Act as well as Section 80A, we see no reason to take a view different from the Bombay High Court as in the present case. Resultantly, tax appeal is dismissed." 3. The sole surviving question is with respect to computation of book profit for the purpose of Section 115JB of the Act. Issue is whether expenditure attributable to undertaking of the assessee, which is eligible for deduction under section 10A of the Act, to be allowed while computing the book profit under section 115JB of the Act. CIT [A] considered the issue in the following manner : " 5. Next ground i....
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....eof or section 10A or section 10B or section 11 or section 12 apply. Clause (ii) provided that such book profit would be reduced by the amount of income to which any of the provisions of section 10 other than the provisions contained in clause (23G) thereof or section 10A or section 10B or section 11 or section 12 apply, if any such amount is credited to the profit or loss account. The said explanation is renumbered as Explanation (i) and clause (f) thereof was amended by the Finance Act, 2007 w.e.f 1st April 2008 by virtue of which the words, "Section 10A or section 10B or" were omitted. Corresponding changes were also made in clause (ii) by the same act where also, the words "section 10A or section 10B or" were omitted. Thus, prior to 1st....