2018 (5) TMI 1100

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....t in law in allowing deduction u/s. 10B on export profit of EOU before setting off carried forward unabsorbed depreciation of earlier years as provided u/s. 32(2) of the Act?" 2. The respondent-assessee is a company registered under the Companies Act and is engaged in providing business auxiliary and consulting engineering services. The assessee has units which are eligible for deduction under section 10B of the Income Tax Act, 1961 as export oriented units as well as non- eligible units. For the assessment year 2010-11, the assessee filed the return of income in which, the assessee had claimed exemption of its eligible unit without setting off its business from eligible units or may be also ineligible units. The case of the assessee put....

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....ter III of the Act which carries the title "incomes which do not form part of total income". The Court was of the opinion that if the Parliament intended to grant the relief under section 10A by way of a deduction, it would have placed such a provision in Chapter VI-A which contains deduction sections 80HHC and 80-IA etc. The fact that, even after its recast, relief was retained in Chapter III indicates that the intention of the Parliament is to grant exemption and not a deduction. 5. Somewhat similar issue reached the Supreme Court in case of Yokogawa India Ltd (supra). One of the questions considered by the Supreme Court was whether losses of other section 10A units or none section 10A units before deductions under section 10A are effe....