TaxTMI 
TaxTMI 
2013 (8) TMI 1007
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.... losses and unabsorbed depreciation. 2. To clarify this, we are to examine whether the profits and gains as are derived from 100% export oriented undertaking from the export of articles, is allowable before computing income for the purpose of taxation. 3. Learned counsel for the appellants submits that Chapter-III of the Act, which makes Section 10B as a part thereof, makes it clear about incomes which do not form part of total income, and the effect of Section 10B of the Act remains same irrespective of amendment of Section 10 B of the Act. According to him, before computation of total income, the deduction as mentioned in Section 10B of the Act has to be excluded first and thereafter the income has to be computed followed by deducti....
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....hich provides a complete and exhaustive mechanism for taking income from profits and gains of business or profession, and further deduction is allowable under the said Section. According to him, the income from profit and gains is merely an exemption, if Section 10B is read carefully. In support of his contention, he relied on a decision reported in case of Commissioner of Income Tax v. Himatasingike Seide Ltd. (2006) 286 ITR 255 (Karn.) 5. We, after hearing them, examine when deduction of export profit under Section 10B is to be allowed. Section 14 of the Act provides 'Heads of Income'. Under this Section, profits and gains of business or profession is one of the heads which is required to be computed for the purpose of taxation. Wherea....
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....person who is a non resident includes all income from whatever source derived which- (a) is received or is deemed to be received in India in such year by or on behalf of such person; or (b) accrues or arises or is deemed to accrue or arise to him in India during such year." This Section relates to the total income of any assessee. 8. Total income has to be understood in the context of Section 14 of the Act. Aggregate income out of all the heads are mentioned in the heads of income under the said Section. Section 14 of the Act provides as follows :- Heads of income. 14. Save as otherwise provided by this Act, all income shall, for the purposes of charge of income-tax and computation of total income, be ....
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.... the view as follows: "After making all such computations, the assessee would be entitled to the benefit of set off or carry forward of loss as provided under Section 72 of the Act. That is the benefit which is given to the assessee under the Act irrespective of the nature of business which he is carrying on. The said benefit is available even to undertakings under Section 10B of the Act. The expression 'deduction of such profits and gains as derived by an undertaking shall be allowed from the total income of the assessee' has to be understood in the context with which the said provision is inserted in Chapter-III of the Act. Sub-Section (4) of Section 10-A clarifies this position. It provides that the profits derived from export o....
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....applicable in your case ? If yes, have you opted out by filing declaration prescribed u/s 10A (8)/10B(8)/10C (6) ?" The instructions issued by the Department to fill up the form made the position clear. It has been clarified with regard to item No.18 as follows: "Sections 10A, 10B and 10C permit the claiming of deduction from incomes of some specified businesses. This item is meant to eliminate such income (s) from the computation of profits/gains." Thus, from a reading of the aforesaid stand of the Department, it is clear that the provision of Section 10B, amongst others, is not treated to be any head of income and it cannot be brought within the purview of computing income for the purpose of taxation. We, therefore, hold ac....