B/F business loss , unabsorbed depreciation and loss incurred by a non-eligible unit shall not be adjusted while computing the profit eligible for relief u/s. 10A of the Income Tax Act

CIT Vs. Yokogawa India Ltd (Karnataka High Court)- The High Court had to consider two issues for AY 2001-02 & on wards: whether (i) the loss incurred by a non-eligible unit & (ii) the brought forward un absorbed loss & un absorbed depreciation of the eligible unit has to be set-off against the profits of the eligible unit before allowing deduction u/s 10A/ 10B. As the relief under Section 10A of the Act is in the nature of exemption although termed as deduction, such income is neither subject to charge of income tax nor is includible in the total income and accordingly such income ...