ACPL Products Private Limited Vs ACIT (ITAT Agra)
ITAT Agra held that the assessee is entitled to claim deduction u/s. 10A of the Income Tax Act before setting off carry forward losses and unabsorbed depreciation. Accordingly, appeal of the assessee succeeds on this ground.
Facts- The assessee is engaged in the business of manufacturing and export of silver jewellery operating from a unit located in special Economic Zone at Plot No.94 & 99, Phase-II, Noida and therefore, claiming deduction as per the provision of section 10A of the Act.
This appeal by the assessee is directed against the order of learned CIT(A)-II Agra dated 23.10.2013 for A.Y. 2009-10, challenging the impugned order in rejecting the claim of assessee under Section 10A of the I.T. Act before setting off of carried forward loss and unabsorbed depreciation, disallowing deduction/exemption under Section 10A of Interest on FDR, job work charges and earning from foreign exchange rate differences.
Conclusion- Held that I find that Hon’ble Supreme Court specifically held that at the stage of aggregation of total income under other heads and the provisions for set off and carry forward contained in section 70, 72 & 74 of the Act would be premature for application of deduction u/s. 10A of the Act. Therefore, it would be allowed prior to commencing of the exercise to be undertaken under VI of the Act for arriving at the total income of the assessee from the gross total income. I further note that Hon’ble Supreme Court also explained that somewhat discordant use of the expression “total income of the assessee” in Section 10A of the Act has already been dealt with earlier and in the overall scenario unfolded by the provisions of Section 10A of the Act aforesaid discord can be reconciled by understanding the expression “total income of the assessee” in Section 10A of the Act as ‘total income of the undertaking’. Hence, this issue is now settled by the Hon’ble Supreme Court as aforesaid, therefore, I am, following the above ratio, of considered view, that the assessee is entitled to claim deduction u/s. 10A of the Act before setting off carry forward losses and unabsorbed depreciation. Accordingly, assessee succeeds on this ground.
