AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2021 (8) TMI 300
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....their return of income for the assessment year 2010-11 on 20.04.2010 claiming a loss of Rs. 67,39,731/- by showing a sum of Rs. 43,50,946/- as other income on account of unclaimed balances written back and treating the same as exempt u/s. 10AA of the Income-tax Act, 1961 ("the Act"). According to the assessee, this amount was claimed as expenses in the preceding year for the purpose of calculation of deduction u/s. 10AA of the Act, namely, the quantum of deduction u/s. 10AA was reduced to the extent of expenditure to the tune of Rs. 43,50,946/- in the year when such expenses were debited in the profit and loss account. Learned Assessing Officer observed that the assessee did not have profits to claim the deduction u/s. 10AA of the Act in th....
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....A was not correct, inasmuch as the brought forward loss of eligible business for preceding years was required to be reduced from the profits of business from current year before allowing deduction u/d. 10AA which was not done by ld. Assessing Officer; and (iii) the claim of assessee for set off of unabsorbed depreciation against other income of Rs. 35,25,367/- was not in accordance with the law. He, therefore, by adding the addition of Rs. 43,50,946/-, made by the ld. Assessing Officer to the total income of the assessee, computed the same at Rs. 80,57,251/-. 5. Learned CIT(A) further held that the assessee's claim for grant of credit of tax deducted at source to the tune of Rs. 8957/- did not arise from the order under appeal. 6. Challen....
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....the same treatment, the write back of such expenses should be treated as income eligible for deduction u/s. 10AA of the Act. He also submitted that the assessee has brought forward business losses and unabsorbed depreciation amounting to Rs. 11,73,61,104/- and Rs. 5,90,17,382/- respectively pertaining to F.Y. 2008-09 and during the F.Y. 2009-10, the assessee did not set off the aforesaid brought forward business losses and unabsorbed depreciation from the total income of assessee for the purpose of computing deduction u/s. 10AA of the Act. He further submitted that the deduction provided in Chapter VIA is given at the stage of computing the total income once gross total income is arrived at, whereas under Chapter-III, the income of a unit h....
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....- in the year when such expenses were debited in the profit and loss account. Learned Assessing Officer reduced the deduction u/s. 10AA of the Act by such amount of Rs. 43,50,946/- on the ground that the assessee had not claimed any deduction u/s. 10AA of the Act in the immediately preceding year and the write back of such expenses does not fall under the definition of export turnover given in Explanation to section 10AA of the Act. It remains an admitted fact that in the immediately preceding year, the assessee suffered losses and there is no reason not to believe the explanation on behalf of the assessee that due to such losses, the assessee did not claim any deduction u/s. 10AA of the Act in the immediately preceding year, i.e., F.Y. 200....
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.... of the department (No.794 dated 09.08.2000)understood the situation, it is only logical and natural that the stage of deduction of the profits and gains of the business of an eligible undertaking has to be made independently and, therefore, immediately after the stage of determination of its profits and gains. At that stage the aggregate of the incomes under other heads and the provisions for set off and carry forward contained in Sections 70, 72 and 74 of the Act would be premature for application. The deductions under Section10A therefore would be prior to the commencement of the exercise to be undertaken under Chapter VI of the Act for arriving at the total income of the assessee from the gross total income. The somewhat discordant use ....