TaxTMI 
TaxTMI 
2022 (3) TMI 438
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....this court admitted the aforesaid tax case appeal on the following substantial question of law: "Whether on the facts and circumstances of the case, the Tribunal was right in holding that since the issue of whether the deduction under section 10A is to be computed after or before setting off of the losses / depreciation is debatable and therefore CIT had no jurisdiction under Section 263 to revise the assessment order?" 3.The facts of the case are that appellant / assessee filed its return of income on 30.10.2004 admitting 'Nil' income after claiming deduction under section 10A of the Income-tax Act, 1961 (in short, 'the Act'), amounting to Rs. 40,92,756/-. The return was processed and the assessing officer passe....
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....d others v. Yokogawa India Ltd [AIR 2017 SC 463], wherein, it was categorically held 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". The relevant passage of the said decision is usefully extracted below: "12. We have considered the submissions advanced and the provisions of Section 10A as they stood prior to the amendment made by the Finance Act, 2000 with effect from 1-4-2001; the amended Section 10A thereafter and also the amendment made by the Finance Act, 2003 with retrospective effect from 1.4.2001. ....
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....b-section (4) of Section 10A which provides for pro rata exemption, necessarily involving deduction of the profits arising out of domestic sales, is one inst e instance of deduction provided by the amendment. Profits of an eligible unit pertaining to domestic sales would have to enter into the computation under the head "profits and gains from business" in Chapter IV and denied the benefit of deduction. The provisions of sub-section (6) of Section 10A, as amended by the Finance Act of 2003, granting the benefit of adjustment of losses and unabsorbed depreciation, etc. commencing from the year 2001-02 on completion of the period of tax holiday also virtually works as a deduction which has to be worked out at a future point of time, namely, a....
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....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 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 assessee outside these zones or units for the purposes of this provision". 17. If the specific provisions of the Act provide [first proviso to Sections 10-A(1); 10-A(1-A) and 10-A(4)] that the unit that is contemplated for grant of benefit of deduction is the eligible undertaking and that is also how the contemporaneous circular of the department (No. 794 ....