S. 10B, S. 32(2) and S. 72 of the Income-tax Act, 1961

Court :
Appellate Tribunal

Brief :
For the relevant assessment year, the assessee, engaged in the business of IT-enabled accounting services and software development, claimed set-off of carried forward business loss and unabsorbed depreciation against the income of the unit on which deduction u/s.10B was claimed. The Assessing Officer and the CIT(A) disallowed the claim. The CIT(A) noted that once the profits and gains of the unit are eligible for S. 10B deduction, it cannot be taken into consideration for set-off u/s.70 or u/s.71 or for application of S. 72 and, therefore, loss from other undertaking cannot be set off against this profit.

Citation :
Ford Business Services Center (P) Ltd. v. ACIT