TaxTMI 
TaxTMI 
2013 (3) TMI 724
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....llowing grounds:- "1. The learned CIT(A) has erred both in law and on facts in confirming the action of the Assessing Officer of reducing the deduction u/s. 10A of the Income Tax Act at ₹ 6,70,900/- by erroneously calculating the same. The learned CIT(A) erred in law and on facts in confirming the reduction of the brought forward loss and depreciation of Assessment Year 2001-02, 2002-03 and 2003-04 aggregating to ₹ 34,10,405/- from the current year eligible profit of STPI (Sec. 10A) Unit. The learned CIT(A) ignored the records of the assessment wherein the above loss/ unabsorbed depreciation was duly returned and accepted as Non-STPI loss/ depreciation. It be so held now that the deduction u/s. 10A was allowable at ₹ 41,....
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....at as per provisions of section 10A, which says that subject to provisions f that section 10(A), a deduction of such profits/gains as derived by an undertaking from export of articles or thing or computer software for specified period of assessment years shall be allowed from that the total income of the assessee. In other words in respect of profit earned in section 10A unit is to be given a DEDUCTION in computing the total income. Therefore, Profit and Gains is to be first of the total profits of the company amounting to ₹ 44,46,871/- profit pertaining to section 10A unit as per Form No. 56F is of ₹ 41,51,891/- which is deducted as provisions of section 10A(1) remaining thereby income of ₹ 2,94,980/- which pertaining to ....
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....iven deduction under the provisions of section 10A itself. If any income of activities other than STPI activities is earned, the loss/depreciation brought forward in respect of such nits can be set-off against such income on which we have already done as per the State of income. Identical issue has been considered by the Hon'ble Chennai Tribunal in the case of Changepond Technologies (P) V/s. ACIT in ITA No. 731/Mds/2007(2008) 119 TTJ(Chennai) 18. A copy of relevant portion of the said decision is enclosed. With regard to the claim of loss (difference) on account of foreign exchange fluctuation on restatement of current assets and liabilities, please note that he issue is now settled by the Hon'ble Delhi High Court in the case of CIT V/s. ....
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....nditures are related to STPI Unit only. Hence, the unabsorbed depreciation and carried forward losses related to those years pertain to Ahmedabad STPI unit, It is also clear that Mumbai office is a part of the Ahmedabad STPI unit and it is liaison office for STPI unit. Therefore the expenses incurred should be adjusted against the profit of Ahmedabad Unit to arrive at real profit of STPI Unit. And accordingly the carry forwarded loss and absorbed deprecation are required to be set-off against the profit of STPI Unit to compute the real profit of STPI Unit before allowing deduction u/s 10A of the I.T. Act. Accordingly the amount of losses brought forwarded is set-off against the income of the before granting deduction u/s 10A." 5. Aggrieved....
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....t of brought forward losses/unabsorbed depreciation of earlier years? 2. Whether in the circumstances and the facts of the case and in law, the Appellate Tribunal is right in upholding the CIT(A)s order whereby direction is given to revise the reduction of brought forward unabsorbed depreciation and business loss of earlier years and reduce the long term capital gain after giving appeal effect to the order of the assessment year in which the appellants claim has been allowed? 2. Short issue is whether deduction claimed by the assessee under Section 10A of the Income Tax Act, 1961 should be allowed without adjustment of losses of other units and without adjustment of brought forward losses and/or its depreciation of earlier years. 3. The ....
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....lates that in computing the total income of an assesses, there shall be allowed from his gross total income, in accordance with and subject to the provisions of the Chapter, the deductions specified in sections 80C to 80U. Section 80B(5) defines for the purposes of Chapter VI-A gross total income to mean the total income computed in accordance with the provisions of the Act, before making any deduction under the Chapter. What the Revenue in essence seeks to attain is to telescope the provisions of Chapter VI-A in the context of the deduction which is allowable under section 10A, which would not be permissible unless a specific statutory provision to that effect were to be made. In the absence thereof, such an approach cannot be accepted. In....