2014 (6) TMI 775

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.... : D. K. Tyagi, Judicial Member:- This is the revenue's appeal against the order of Ld. CIT(A)-, Valsad dated 26-11-2010 granting deduction u/s. 10B of the Act of Rs. 98,34,684/- before setting off the carried forward loss and unabsorbed depreciation of previous year. 2. Brief facts of the case are that assessee is engaged in the business of manufacturing of premier quality socks and exporti....

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....e Act. Ld. CIT(A) however directed the AO to grant deduction u/s. 10B of the Act following the decision of his predecessor in assessee's own case for assessment year 2005-06 which has been confirmed by the Tribunal in ITA No. 3598/Ahd2008 vide its order dated 2nd January, 2009 by observing as under:- "7. We have heard the rival submissions and gone through the facts of the case as also decision....

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....e light of these provisions, we are inclined to agree with the contentions of the learned counsel and accordingly, we direct the AO to consider the set off of unabsorbed business losses and depreciation after availing deduction under s. 10B of the Act. We also agree with the contention that s. 10B(6) is applicable only for the last year of deduction and not for the earlier years of deduction. Acco....

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.... process the unabsorbed deprecation which is not part of the deprecation of the impugned assessment year is not to be factored, then the deduction as computed will be available for carrying out set off of unabsorbed depreciation. Section 10A deduction is to be done under sections 28 to 44B but separately and independent of computation of profits and gains from eligible business and without factori....