Visual Graphics Computing Services India Private Limited v. The Deputy Commissioner of Income-tax Company Circle-III(4), Chennai
|Visual Graphics Computing Services India Private Limited
|The Deputy Commissioner of Income-tax Company Circle-III(4), Chennai
|HIGH COURT OF MADRAS
|Date of Order
|substantial question of law • unabsorbed depreciation • depreciation allowance • eligible undertaking • gross total income • eligible unit • carry forward • set off
|The question of law arising in the present appeal is as under. Whether the Tribunal was right in law in holding that the carry forward loss / depreciation of one eligible unit should be set off against the profits of another eligible unit before deduction under Section 10A of the Act 2. Here in the case in hand, the total income was first arrived at by the Revenue through the Assessing Officer in the Assessment Order by computing the total income by way of brought forward or carry forward the depreciation allowance of the earlier Assessment Years and set off the unabsorbed depreciation first and making the return Nil, thereby leaving the Assessee in a position where it could not claim any deduction under Section 10B as there was no income after set off of carry forward depreciation and unabsorbed depreciation from earlier years. Therefore we have no hesitation to hold that, the decision of the ITAT, which is impugned herein, would not stand in the legal scrutiny, in view of the law having been declared by the Hon'ble Apex Court. We are of the view that, the Substantial Question of Law raised in this Appeal is covered by the said decision, therefore it can be answered accordingly. In the result, the Appeal is allowed and the Substantial Question of Law raised in this Appeal is answered in favour of the Assessee and against the Revenue. Accordingly, in terms of the aforesaid judgment rendered by this Court itself, the present appeal is disposed of in the same terms and the question of law framed above is answered in the same terms.