Section 10A :Brought forward business loss is to be set-off

Brought forward business loss is to be set-off while computing income u/s 10A

[2015] 57 taxmann.com 256 (Bombay)

HIGH COURT OF BOMBAY

Commissioner of Income-tax-8

v.

Shantivijay Jewels Ltd

Section 10A of the Income-tax Act, 1961 - Free trade zone (Computation of deduction) - Assessment year 2005-06 - Assessee engaged in business of manufacturing and export of gems jewellery, filed its return for assessment year 2005-06 and claimed deduction under section 10A - Subsequently, assessee filed a revised return withdrawing its claim under section 10A and claimed set off of unabsorbed business loss brought forward from assessment year 2002-03 against profits of erstwhile 10A unit - Assessing Officer disallowed claim of set off - Whether as per CBDT Circular No. 7 of 2003, dated 5-9-2003, losses arising in assessment year 2001-02 and subsequent years were to be allowed while computing income under section 10A - Held, yes - Whether further by virtue of non obstante clause in section 10A(6) and by virtue of words 'ending before 1st day of April, 2001' inserted in clause (ii) to section 10A with effect from 1-4-2004, revenue could not have disallowed claim of set off - Held, yes [Paras 6 & 8][In favour of assessee]

Circulars and Notifications : CBDT Circular No. 7 of 2003, dated 5-9-2003