2022 (12) TMI 393

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....ppeal effect order pursuant to the Appellate Order passed by the ld CIT ( A) holding that there is no error in the order giving appeal effect passed by ld AO and hence appeal of assessee was allowed . 2. Ld AO preferred appeal raising following grounds: ITA No. 4340/MUM/2016 (Assessment Year 2007-08) "1. Whether on the facts and in the circumstances of the case, the Ld CIT(A) was correct in directing the assessing officer to adjust the losses of 10A Unit against the adjustment u/s 92CA of the Act and 40(a)(i) of the ACT without appreciating the fact that TP adjustment and the disallowance is question in altogether a separate adjustment/disallowance, which cannot be apportioned to a specific unit.? 2. Whether in law, facts and circums....

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....s engaged in the business of call centre and IT enabled services providing contact centre services to the customer of its associated enterprises. The assessee has 4 different units in STPI Software Technology Park in Mumbai, Hyderabad, Chennai and Gurgaon. These undertakings are eligible for deductions u/s. 10A of the Act. 5. For A.Y. 2007-08 Assessee filed its return of income on 31.10.2007 declaring net loss of Rs. 8,22,97,184/-. The computation shows that assessee earned profit from its Mumbai and Hyderabad undertaking however, it suffered losses in Chennai and Gurgaon undertakings. With respect to the undertakings, where it earned profit, assessee claimed deduction u/s. 10A of the Act. Where assessee incurred losses, same were carried ....

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....12.11.2013 disallowing the set off of losses of 10A units against other income. 11. The assessee aggrieved with that, preferred an appeal before the learned CIT(A). The learned CIT(A) passed an order on 14.03.2016 following the decision of the Hon'ble Bombay High Court in case of Hindustan Unilever Limited 191 taxmann 119, CIT Versus Patni Computers Systems Limited and Galaxy CIT Versus Galaxy Surfectants Ltd held that the loss of eligible units are held to be business loss. Such losses are to be allowed to be set off against the other business income of the assessee and if same are not sufficient, it could also be set off against othetr income. Further, there is no prohibition that adjustment of transfer pricing resulting into income, not....