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| The Tax Publishers2020 TaxPub(DT) 0648 (Bom-HC) INCOME TAX ACT, 1961
Section 10A
Supreme Court in CIT v. Yokogawa India Ltd [(2017) 77 taxmann.com 41 (SC) : 2016 TaxPub(DT) 5139 (SC)] had held that from a reading of the relevant provisions of section 10A it was more than clear that deductions contemplated therein is 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 assessee. Therefore, appeal of Revenue was dismissed
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Deduction under section 10A - Computation of total turnover - Adjustment of loss from ineligible units -
Issue arose for consideration as to whether Tribunal was justified in holding that the deduction under section 10A was to be computed before adjusting business loss/depreciation. Held: Supreme Court in CIT v. Yokogawa India Ltd [(2017) 77 taxmann.com 41 (SC) : 2016 TaxPub(DT) 5139 (SC)] had held that from a reading of the relevant provisions of section 10A it was more than clear that deductions contemplated therein is 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 assessee. Though section 10A, as amended, is a provision for deduction, the stage of deduction would be while computing the gross total income of eligible undertaking under Chapter IV, and not at the stage of computation of the total income under Chapter VI. Thus, appeal of Revenue was dismissed.
REFERRED : C.I.T. & Anr. v. Yokogawa India Ltd. (2017) 77 taxmann.com 41 (SC) : 2016 TaxPub(DT) 5139 (SC) CIT v. Galaxy Surfactants Ltd. ITXA 3465 of 2011 : 2012 TaxPub(DT) 1713 (Bom-HC) Aesseal India Pvt. Ltd. v. ACIT [ITA No. 1356/PN/2014, dt. 5-5-2016]
FAVOUR : In assessee's favour
A.Y. :
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