Loss from a 10A unit is to be adjusted against taxable profit of other units after allowing deduction under section 10A in respect of such eligible unit

Capgemini India Pvt. Ltd. Vs The Addl. Commissioner of Income Tax (ITAT Mumbai)- The provisions of section 10A of the Act were amended with effect from assessment year 2001-02 and as per the amended provisions, the profit and gains derived by an eligible undertaking are required to be deducted from the total income. Thus from assessment year 2001-02, section 1 0A is no longer an exemption provision and it allows deduction from total income. The deduction is to be allowed in respect of each eligible undertaking separately which has also been clarified by the CBDT. Hence the loss from a 10A unit is to be adjusted against taxable profits of other units only after deduction under section 10A of the Act in respect of each eligible unit.