TaxTMI 
TaxTMI 
2012 (8) TMI 953
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....t an income of Rs. 93,750/-as per regular computation and Rs. 20,33,250/- as per section 115JB of the Income Tax Act, 1961 (the Act) vide order dtd. 29-12-2008 passed u/s 143(3) of the Act. On appeal the ld. CIT(A) while confirming the addition made by the A.O. dismissed the appeal. 3. Being aggrieved by the order of the ld. CIT(A) the assessee is in appeal before us. 4. Grounds No. 1 & 4 are general in nature which do not require any adjudication and, hence, the same are rejected. 5. Ground No. 2 and 2.1 are against the adjustment of brought forward losses and depreciation before allowing exemption u/s 10B of the Act. 6. Brief facts of the above issue are that during the course of assessment proceedings the A.O. observed that t....
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....ed that provisions of section 10B is clear which provides that deduction of profits and gains as are derived by an undertaking shall be allowed from the total income of the assessee, merely because it falls under Chapter III which is titled "incomes which do not form part of the income", the same cannot be considered to be exemption provision so as to deny the assessee benefit of sections 70 & 71 of the Act. The A.O. also relied on in the case of CIT vs. Shirke Construction Equipment Ltd., 291 ITR 280 and IPCA Laboratories. In view of these facts, the A.O. rejected the claim of deduction u/s 10A/10B amounting to Rs. 56,29,036/-. On appeal the ld. CIT(A) following the decision in Sword Global (I) P. Ltd. vs. ITO 306 ITR (A.T.) 286 (Chennai),....
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....axman 144 (Mag.) wherein it has been held that brought forward unabsorbed depreciation and losses of unit, income of which is not eligible for deduction u/s 10A, cannot be set off against current profit of eligible unit for computing deduction u/s 10A. 10. Respectfully following the above authoritative pronouncement of the Hon'ble jurisdictional High Court which is binding on us, we direct the A.O. to allow the claim of the assessee in accordance with the above decision. Accordingly we while reversing the order passed by the A.O. and the ld. CIT(A) on this account, allow the grounds taken by the assessee. 11. Ground No. 3 and 3.1 are against the non-allowance of provision of fringe benefit tax Rs. 1,28,000/- from the book profits u/s ....
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....n the computation of "book profit" under section 115JB of the Income-tax Act." He further submits that according to Explanation 1 of section 115JB of the Act "book profit" means net profit as shown in the P&L account for the relevant previous year prepared under sub-section (2) as increased by the sum mentioned in sub-clause (a) to (i) of the said explanation. He further submits that in the above sub-clauses (a) to (i) there is no reference of addition of fringe benefit tax. He further submits that the provision of fringe benefit tax in the books of accounts is ascertained liability according to the Act, therefore, the said amount cannot be added to the book profits of the assessee. He, therefore, submits that the addition made by the A.O. ....