Section 10A - Page 4

Section 10A/10B deductions should be made from Gross Total Income instead of Total Income

Comstar Automative Technologies Vs DCIT (Madras High Court)

Deductions either under Section 10A or 10B would be made while computing the gross total income of the eligible undertaking and not at the stage of computation of the total income....

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For section 10A, total turnover is sum of export & domestic turnover

Section 10A of the Income Tax Act, 1961 (the Act for short) deals with special provision in respect of newly established undertakings in free trade zone, etc. For the purposes of section 10A, total turnover is sum of export turnover as well as domestic turnover...

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Posted Under: Income Tax |

HC allowed deduction U/s. 10AA as new unit was not formed by transferring any machinery or plant previously used

Pr. CIT Vs. Macquarie Global Services Pvt. Ltd. (Delhi High Court)

Pr. CIT Vs. Macquarie Global Services Pvt. Ltd.  (Delhi High Court) The respondent-assessee had set up a new unit in Special Economic Zone (SEZ) income from which was claimed as exempt under Section 10AA of the Act for a period of ten years commencing from the Assessment Year 2010-11. Exemption was allowed in the Assessment […]...

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Question of Violation of Section 10AA(4)(ii) should be raised in First Year of Operation / Exemption

CIT Vs Macquarie Global Services Pvt Ltd (Delhi High Court)

CIT Vs Macquarie Global Services Pvt Ltd (Delhi High Court) It is an accepted and admitted position that the unit in the SEZ had commenced business in the period relating to the Assessment Year 2011-12. The assessee had claimed and was allowed deduction under Section 10AA in the Assessment Years 2011-12 and 2012-13. The Assessing [&hellip...

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Sec. 10AA Eligible unit’s loss can be set off against income of other units

DCIT (LTU) Vs. M/s. Avtec Limited (ITAT Mumbai)

Undisputedly, the assessee has claimed business loss of Rs.3,90,35,968/- from MEPZ Unit at Chennai, eligible for deduction u/s 10AA. It is also not in dispute that assessee has claimed set off of this loss against the income from other units. AO proceeded to hold that loss from MEPZ unit at Chennai, which is eligible for […]...

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Exemption Under Special Provisions – Sections 10A/10AA/10B

Article discusses Exemption Under Special Provisions of Sections 10A, Section 10AA and Section 10B of Income Tax Act, 1961. A. Section 10A- Special provision in respect of newly established undertakings in free trade zone, etc. The benefit in respect of newly established Industrial Undertaking in FTZ, EHTP SEZ or STP is Available to all A...

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Posted Under: Income Tax |

Computation of deduction u/s 10A of Income Tax Act, 1961

Circular No. 4/2018-Income Tax 14/08/2018

As per section 10A(4) of Income Tax Act, 1961, profits derived from export of articles or things or computer software shall be amount which bears to the profits of the business of the undertaking , the same proportion as the export turnover in respect of such articles or things or computer software bears to the total turnover of the busin...

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Deduction U/s. 10AA cannot be denied in in 3rd year by examining factors which were required to be seen in first year

Macquarie Global Services Vs DCIT (ITAT Delhi)

Macquarie Global Services Vs DCIT (ITAT Delhi) Once the claim of deduction u/s 10AA has been accepted in the first year of the operations and also in the second year, then in the third year same cannot be withdrawn by examining the factors which were required to be seen in the first year of the […]...

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Unabsorbed depreciation not to be adjusted first in computation of deduction U/s. 10A

M/s Vision IKnowledge Solutions Pvt. Ltd. Vs Pr. CIT-9 (ITAT Delhi)

Deduction u/s 10A is to be allowed from total income as computed under chapter IV of the Income Tax Act, 1961 and not at the stage of computation of total income under chapter VI of the Income Tax Act, 1961. Therefore from this it is clear that while claiming deduction u/s 10A unabsorbed depreciation is not to be adjusted....

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Definition of total turnover given U/s. 80HHC / 80HHE cannot be adopted for Section 10A

CIT vs. HCL Technologies Ltd. (Supreme Court)

The definition of total turnover given under Sections 80HHC and 80HHE cannot be adopted for the purpose of Section 10A: HCL Technologies case...

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