Brief of the case:
In this case Hon’ble Court considered question of law that whether claim for set off of unabsorbed business loss which was brought forward in subsequent AY against the profit of section 10A is allowable or not. ITAT allowed the appeal filed by the assessee and Hon’ble Court after considering the facts of the case decided that ITAT didn’t commit any error while passing the judgment.
Facts of the case:
- The Assessee is engaged in the manufacturing and export of gems jewellery and filed return of Income for AY 2005-05 after claiming the deduction under 10A.
- Later on assessee revised the return in which he withdrew its claim of deduction under section 10A and claimed set off for the unabsorbed business loss brought forward from AY 2002-03 against the profits of section 10 for the current year.
- The claim of set off was disallowed by AO.
- Aggrived from the order assessee filed appeal before CIT (A) which was dismissed.
Contention of the revenue:
- Claim of the set off cannot be allowed for the current year being the first AY after tax holiday period.
- Since the unabsorbed loss of AY 2002-03 had been set off against the business profit of section 10 A in AYs 2003-04 & 2005-06, there remain no loss for the set off in the impugned AY.
- ITAT remained fail in looking the above view.
Contention of the assessee:
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