The Tax Publishers2020 TaxPub(DT) 3664 (Karn-HC) : (2020) 429 ITR 0026

INCOME TAX ACT, 1961

Section 260A

Tribunal was justified in directing AO not to set off carry forward business losses of STPI unit and current year loss of non STPI against the profits of the business before allowing deduction under Section 10A.

Appeal (High Court) - Deduction under section 10A - Set off of carry forward business losses of STPI unit and current year loss of non-STPI unit against the profits of business -

Issue arose for consideration as to whether Tribunal was justified in law in directing AO not to set off carry forward business losses of STPI unit and current year loss of non STPI against the profits of business before allowing deduction under Section 10A. Held: Substantial question of law was covered by a decision of this Court in 'CIT & Ors. v. Yokogawa India Ltd.' (2017) 391 ITR 274 (SC) : 2016 TaxPub(DT) 5139 (SC) and answered in favour of assessee by holding that Tribunal was justified in directing AO not to set off carry forward business losses of STPI unit and current year loss of non STPI against the profits of the business before allowing deduction under section 10A.

Followed:C.I.T. & Anr. v. Yokogawa India Ltd. (2017) 391 ITR 274 (SC) : 2016 TaxPub(DT) 5139 (SC) CIT v. Yokogawa India Ltd. 2011 TaxPub(DT) 1778 (Karn-HC)

REFERRED :

FAVOUR : In assessee's favour

A.Y. :


INCOME TAX ACT, 1961

Section 260A

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