IN HIGH COURT OF KARNATAKA AT BANGALORE DATED THIS 16TH DAY OF SEPTEMBER, 2014 PRESENT HON BLE MR.JUSTICE N.KUMAR AND HON BLE MRS.JUSTICE RATHNAKALA INCOME TAX APPEAL NO.570 OF 2013 BETWEEN 1. COMMISSIONER OF INCOME-TAX, C.R. BUILDING, QUEENS ROAD, BANGALORE. 2. ASST. COMMISSIONER OF INCOME-TAX, CIRCLE 11(3), RASHTROTHANA BHAVAN, NRUPATHUNGA ROAD, BANGALORE. APPELLANTS (BY SRI K.V.ARAVIND, ADV.) AND M/S. FEDERAL INNOVATIONS LTD., DAIWIK, NO.1/4, CUNNINGHMA CROSS ROAD, BANGALORE. RESPONDENT (BY SRI A.SHANKAR AND SRI M.LAVA, ADVS.) -2- THIS INCOME TAX APPEAL IS FILED UNDER SECTION 260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 29-07-2013 PASSED IN ITA NO.746/BANG/2010, FOR ASSESSMENT YEAR 2006- 2007, PRAYING THIS HON'BLE COURT TO I. FORMULATE SUBSTANTIAL QUESTIONS OF LAW STATED ABOVE. II. ALLOW APPEAL AND SET ASIDE ORDERS PASSED BY INCOME-TAX APPELLATE TRIBUNAL, BANGALORE IN ITA NO.746/BANG/2010 DATED 29-07-2013 AND CONFIRM ORDER OF APPELLATE COMMISSIONER CONFIRMING ORDER PASSED BY ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-11(3), BANGALORE. THIS ITA COMING ON FOR ADMISSION THIS DAY, N.KUMAR J., DELIVERED FOLLOWING JUDGMENT This appeal is preferred by Revenue challenging order passed by Tribunal. 2. following substantial question of law which arise in this appeal is as under Whether on facts and in circumstances and in law Tribunal was correct in holding that unabsorbed depreciation loss cannot be set off from business profits before computing deduction u/s.10A of Act when section 10A of -3- Act provides for deduction of benefit on profits and gains? 3. said question was considered by this Court in case of Commissioner of Income Tax And Another Vs. Yokogawa India Private Limited reported in 341 ITR 385, where it was answered in favour of assessee and against Revenue. We find no merits in this appeal. However, it is submitted that against above judgment, Revenue has preferred appeal before Apex Court. In event, Revenue succeeds before Apex Court, assessing authority can give effect to this order in terms of Section 260(1A) of Income Tax Act, 1961. Ordered Accordingly. Sd/- JUDGE Sd/- JUDGE nvj Commissioner of Income-tax, Bangalore / Asst. Commissioner of Income-tax, Circle-11(3), Bangalore v. Fedral Innovations Ltd