2020 (6) TMI 165

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.... ld. CIT(A) has erred in allowing the assessee's claim of adjusting the brought forward depreciation loss prior to working out the eligible profit of section 10B of the Income Tax Act, 1961 ["Act" in short] undertaking by referring to the Apex Court decision in the case of CIT v. Yokogawa India Ltd. (2017) 291 CTR 1(SC). 2. Brief facts of the case are that the assessee filed the return of income for the assessment year 2010-11 on 21.09.2010 with NIL income and also filed a revised return of income on 05.03.2011. The case was selected for scrutiny and the assessment under section 143(3) of the Act was completed on 19.11.2012. Thereafter, the assessment was reopened under section 147 of the Act on the ground that the brought forward loss r....

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....an clear to us that the deductions contemplated therein is qua the eligible undertaking of an assessee standing on its own and without reference to the other eligible or non-eligible units or undertakings of the assessee. The benefit of deduction is given by the Act to the individual undertaking and resultantly flows to the assessee. This is also more than clear from the contemporaneous Circular No. 794 dated 9.8.2000 which states in paragraph 15.6 that, "The export turnover and the total turnover for the purposes of sections 10A and 10B shall be of the undertaking located in specified zones or 100% Export Oriented Undertakings, as the case may be, and this shall not have any material relationship with the other business of the ass....

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....g therein, as formulated at the outset of this order, by holding that though Section 10A, as amended, is a provision for deduction, the stage of deduction would be while computing the gross total income of the eligible undertaking under Chapter IV of the Act and not at the stage of computation of the total income under Chapter VI. All the appeals shall stand disposed of accordingly." By following the above decision, the ld. CIT(A) has observed that the profit of the undertaking should be computed independently before adjusting any carried forward business. The profit thus arrived should be given benefit under eligible sections 10A/10B of the Act even though the assessee has had unabsorbed business loss of previous years besides not comme....