INCOME TAX ACT, 1961

Section 10A

Deduction under section 10A - Undertaking in free-trade zone - Computation - Set-off of losses of SEZ/STPI unit

Assessee set off the losses incurred in the 'SEZ/STPI undertakings' against the business income generated from 'Non-STPI/Non-SEZ' undertakings' and accordingly claimed deductions under section 10A/10AA in respect of profits earned by profit making SEZ/STPI undertakings. However, AO rejected the claim of assessee on the ground that profits/losses generated by SEZ/STPI undertakings should be grouped together, in which case the losses incurred by STPI/SEZ undertakings should be set off against profits earned by other SEZ/STPI undertakings. Held: An identical issue was decided in assessee's own case in (2016) 382 ITR 179 (Karn-HC) : 2016 TaxPub(DT) 327 (Karn-HC), wherein it was held that loss arising in eligible SEZ/STPI undertakings are not required to be adjusted against the profits arising from other SEZ/STPI undertakings and the said loss can be adjusted against profits arising from non-SEZ/non-STPI units. Following the same, the issue was decided in favour of assessee.

Followed:Wipro Ltd.'s case (2016) 382 ITR 179 (Karn) : 2016 TaxPub(DT) 327 (Karn-HC) 56

REFERRED :

FAVOUR : In favour of assessee.

A.Y. : 2009-10 to 2014-15

INCOME TAX ACT, 1961

Section 10A

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