INCOME TAX ACT, 1961

--Deduction under section 10A--Undertaking in a free trade zone Nature of deduction--Revenue observed that deduction under section 10A of such profits and gains as are derived by an undertaking from the export of articles or things or computer software for a period of ten consecutive assessment ears was to be allowed from total income of the assessee. Held: Was not justified as section 10a provides for deduction and not exemption, therefore, profits of the unit eligible for deduction was required to be made at the stage when profits and gains of business was computed in first instance.

Income Tax Act, 1961 Section 10A

IN THE BOMBAY HIGH COURT

D.Y. CHANDRACHUD & R.D. DHANUKA, JJ.

CIT v. Black & Veatch Consulting (P.) Ltd.

ITA Lodging No. 1237 of 2011

9 April, 2012

Deduction under section 10A in respect of eligible unit has to be allowed before setting off brought forward depreciation and losses of a non-10A unit

Appellant by : Ravindra V. Lokhande

Respondent by : Percy J. Pardiwala and Jas Sanghavi