TaxTMI 
TaxTMI 
2008 (8) TMI 929
X X X X Extracts X X X X
X X X X Extracts X X X X
....er units and business. b) Exemption u/s 10A be allowed, as claimed by the assessee c) Current year losses, brought forward losses and unabsorbed depreciation allowance relatable to other units of the assessee be not deducted from the eligible profits of the STP Unit in the process of computing deduction u/s 10A. d) The AO be directed to eliminate the amount of expenditure and income relatable to STP Unit, debited and credited to the profit and loss account respectively, in the process of computation of book profits under section 115JB; e) Interest levied u/s 234 B be deleted. f) Interest levied u/s 234D be deleted. g) .................. 2. The assessee engaged in manufacturing, tradin....
X X X X Extracts X X X X
X X X X Extracts X X X X
....orm part of total income and therefore, need not be computed in the manner laid down in the Chapter-IVD. iv. The profits envisaged under Chapter-III has to be understood as commercial profits or book Profits and v. The instructions to fill in form-1 speaks of elimination at source, of the profits of business eligible for the said deduction, while computing the profits and gains of the business or profession. 4. Learned AR also submitted that the ratio in case of M/s. Himatsingike Seide Ltd.,(2006) 286 ITR 255(Kar.) is not applicable to the facts of the assessee's case, because the assessee owned two units, one STP unit(Software Division), the other anon-STPI Unit (Product and Systems Service Division) and the said d....
X X X X Extracts X X X X
X X X X Extracts X X X X
....y be decided in the light of the ratio of the Tribunal's decision in case of M/s. Web Spectrum Software Pvt.Ltd., Before us, learned AR relied on the decisions of M/s. I Gate Global Solutions Ltd., in ITA No. 248 and 249(B)/2007, ACIT vs M/s. Webspectrum Software (P) Ltd., in ITA No. 3879B)/2006 and ACIT vs M/s. Yokogawa India Ltd., in ITA No. 1802(B)/2005. In sum and substance, learned AR submitted that deduction should be held allowable from profit and gains of eligible undertaking uninfluenced by the results of the other units so, exemption u/s 10A be allowed as claimed by the assessee. On the other hand, learned DR supported the order of the authorities below. 5. We find that the Bangalore Bench of the Tribunal in the case of ass....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ecutive assessment years referred to in this sub-section shall be reckoned from the assessment year relevant to the previous year in which the [undertaking began to manufacture or produce such articles or things or computer software] in such free trade zone or export processing zone: [Provided also that for the assessment year beginning on the 1st day of April, 2003, the deduction under this sub-section shall be ninety per cent of the profits and gains derived by an undertaking from the export of such articles or things or computer software:] Provided also that no deduction under this section shall be allowed to any undertaking for the assessment year beginning on the 1st day of April, 2010 and subsequent years. S....
X X X X Extracts X X X X
X X X X Extracts X X X X
..../s 10 of the Income-tax Act. It depends on the particular case where certain income, in respect of which the Act is made inapplicable to the scheme of the Act, and in such a case, the profit and loss resulting from such a source do not enter in to the computation at all. But there are other sources which for certain economic reasons are not included or excluded by the 'will' of the Legislature. In such a case we must look to the specific exclusion that has been made." 13. In view of the above referred judgment, we have to consider the exclusion or deduction as per sec. 10A. As pointed out earlier, sec. 10A specifically states that a deduction is to be given. The deduction is in respect of profit and gains and the word '....