TaxTMI 
TaxTMI 
2020 (10) TMI 799
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....Act' for brevity), challenging the common order dated 12.11.2018 passed by the Income Tax Appellate Tribunal ('the Tribunal' for brevity), Madras 'B' Bench, Chennai, made in Tax Case Appeal Nos. I.T.A.Nos. Assessment Years T.C.A.No.395 of 2019 I.T.A.No.384/Chny/2018 2003-04 T.C.A.No.396 of 2019 I.T.A.No.385/Chny/2018 2004-05 T.C.A.No.397 of 2019 I.T.A.No.387/Chny/2018 2006-07 T.C.A.No.398 of 2019 I.T.A.No.386/Chny/2018 2005-06 T.C.A.No.400 of 2019 I.T.A.No.383/Chny/2018 2002-03 2. The Revenue has raised the following Substantial Questions of Law for consideration: 1. Whether the Tribunal was justified in holding that deduction u/s 10B of the Income Tax Act....
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....ntial Questions of law have been answered in favour of the assessee in the case of M/s.Comstar Automative Technologies Private Limited., Vs. The Deputy Commissioner of Income Tax Company Circle - I (3) in T.C.A.No.228 of 2011 dated 18.03.2020, which was followed by this Court in the case of The Commissioner of Income Tax Vs. M/s.Comstar Automotive Technologies Pvt. Ltd., in T.C.A.No.301 of 2019 dated 06.07.2020. 5. The operative portion of the judgment in the case of M/s.Comstar Automative Technologies Private Limited., Vs. The Deputy Commissioner of Income Tax Company Circle - I (3) (cited supra) reads as follows: "25. Having considered the said questions, as has been brought before the Hon'ble Apex Court for consideration,....
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....e i.e. immunity from taxation, the practical effect of it in the light of the specific provisions contained in different parts of the Act would be wholly different. The above implications cannot be more obvious than from the case of Civil Appeals Nos. 8563 and 8564 of 2013 and civil appeal arising out of SLP (C) No. 18157 of 2015, which have been filed by loss making eligible units and/or by non-eligible assessees seeking the benefit of adjustment of losses against profits made by eligible units. 15. Sub-section (4) of Section 10A which provides for pro rata exemption, necessarily involving deduction of the profits arising out of domestic sales, is one instance of deduction provided by the amendment. Profits of an eligible....
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....ent. This is the next aspect of the case which we would now like to turn to. 16. From a reading of the relevant provisions of Section 10A it is more than clear to us that the deductions contemplated therein are 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 para 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 sp....
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.... of the assessee" in Section 10A as "total income of the undertaking". 18. For the aforesaid reasons we answer the appeals and the questions arising 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." 26. In the aforesaid Judgment, the reason for such conclusion arrived at by the Hon'ble Apex Court has been explained at para 17 in unequivocal terms. The Apex Court has specifically held that, ....