2011 (11) TMI 756

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....r of Income-tax in so far as it is prejudicial to the interests of the appellant is bad and erroneous in law and against the facts and circumstances of the case. 2. That the learned Commissioner of Income-tax erred in law and on facts in assuming jurisdiction u/s 263 of the Act. 3. That the learned Commissioner of Income-tax erred in law and on facts in holding that the brought forward loss u/s 72 and unabsorbed depreciation u/s 32(2) of the Act is to be set-off against the profits of eligible undertaking before working out the quantum of exemption u/s 10A of the Act. Each of the above grounds is without prejudice to one another and the applicant craves leave of the Hon'ble Income-tax Appellate Tribunal, Bangalore....

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....riate order u/s. 263 of the Act and issued a show cause notice dated 7.1.2010 to the assessee. In response to the said notice, the assessee submitted as under:- "The notice refers to the earlier order of ACIT, Circle 12(4), Bangalore u/s 143(3) of Income-tax Act, 1961. We are of the opinion that there was no error in the earlier order and this was done in accordance with the law. We wish to bring to your kind notice, the contents of the provisions of Section 10A and 72A of the Income-tax Act, 1961 supporting the order of the ACIT. Therefore we are requesting your good office to cancel proceedings and accept the order of the ACIT u/s 143(3)." 5. The ld. CIT after considering the submissions of the assessee was o....

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.... order dated 9.8.11. A copy of the said order was also furnished. 7. In her rival submissions, the ld. CIT(DR) strongly supported the impugned order passed by the ld. CIT. 8. We have considered the rival submissions of both the parties and carefully gone through the material available on record. It is noticed that in the aforesaid case of CIT, LTU v. M/s. Intellinet Technologies India Pvt. Ltd. & Ors. (surpa), the Hon'ble jurisdictional High Court considered the following substantial question of law : (ii) "Whether the Tribunal was correct in holding that the deduction under Section 10-A or 10-B of the Act during the current assessment year has to be allowed without setting off brought forward unabsorbed losses and the deprec....