S. 10A/ 10B deduction allowable without set off of losses of non-eligible units

CIT vs. Black & Veatch Consulting Pvt.Ltd (Bombay High Court)

 

The question arose whether the brought forward unabsorbed depreciation and losses of a unit which was not eligible for s. 10A deduction could be set-off against the current profit of a unit eligible for s. 10A deduction. The Tribunal, relying on Scientific Atlanta Vs. ACIT 129 TTJ 273 (Che)(SB) held that the a. 10A deduction had to be allowed before set-off of the losses of the non-eligible unit. On appeal by the department to the High Court, HELD dismissing the appeal: