Carry forward business losses & depreciation cannot be set off against profits of an undertaking while working out claim u/s. 10B

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IN THE ITAT MUMBAI BENCH ‘A’

ASB International (P.) Ltd.

v.

Deputy Commissioner of Income tax, Circle-1

IT Appeal Nos. 245, 7040 to 7042 (Mum.) of 2011

[Assessment years 2005-06 to 2007-08]

JUNE 29, 2012

Since the provisions of section 10A and 10B are similar in nature and as the jurisdictional High Court decided the issue while considering the provisions of section 10B also respectfully following the above, we uphold the contention of assessee that carry forward business losses and depreciation cannot be set off to the profits of the undertaking while working the claim u/s 10B. Therefore, AO is directed to do the needful in light of the above principles laid down.