Itxa/973/2013 Of Commissioner Of Income Tax-2 v. Larsen And Toubro Infotech Ltd

IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL (L)NO.181 OF 2013WITHINCOME TAX APPEAL (L)NO.183 OF 2013 Commissioner of Income Tax-2..Appellant.V/s.Larsen & Toubro Infotech Limited..Respondent. Mr. Suresh Kumar, for the Appellant in both the matters.Mr. J. D. Mistri, Sr. Advocate with Mr. A. K. Jasani, for the Respondent in both the matters. P.C:- CORAM: J.P.DEVADHAR & M.S.SANKLECHA,JJ.DATE : 12[th] MARCH, 2013. In these Appeals by the Revenue for the Assessment Years 2005-06 and 2002-03 following common questions have been raised for our consideration. (a)Whether on the facts and in the circumstances of the case and in law, the Tribunal was correct in law in holding that deduction under Section 10A of Income Tax Act, 1961 has to be computed separately for each unit and losses from some units cannot be adjusted against profits and other units, by following the decision of the Special Bench of the Tribunal in the case of M/s. Scientific Atlanta India Technology Pvt. Ltd. (38 SOT 252 Chennai) (SB) and the decision of the High Court in the case of 903-904-181-183-2013 M/s. Black & Veatch Consulting Pvt. Ltd. (ITA 1237 of 2011 dated 9.4.2012) (20 Taxmann 727), ignoring that the said decisions are distinguishable on facts with reference to the assessee's case as in those cases the issue related to the set-off of brought forward unabsorbed depreciation and losses of units not eligible for deduction under Section 10A against the current profits of units eligible for deduction under Section 10A, whereas in the present case the losses from eligible units are set-off against the profits from eligible units of the same year for computing deduction under Section 10A? (b)Whether on the facts and in the circumstances of the case and in law, the Tribunal was correct in law in holding that deduction under Section 10A of Income Tax Act, 1961 has to be computed separately for each unit and losses from some units cannot be adjusted against profits from other units, by following the decision of the Special Bench of the Tribunal in the case of M/s. Scientific Atlanta India Technology Pvt. Ltd. (38 SOT 252 Chennai) (SB) and the decision of the High Court in the case of M/s. Black & Veatch Consulting Pvt. Ltd. (ITA 1237 of 2011 dated 9.4.2012) (20 Taxmann 727), ignoring the provisions contained in Section 80AB of the Income Tax Act, that only the net income derived from exports shall be eligible for deduction under section 10A and in the Gross Total Income, only the net of income after adjusting losses from various businesses against profits from other businesses is included? (c)Whether on the facts and in the circumstances of the case and in law, the Tribunal was correct in law in holding that deduction under Section 10A of Income Tax Act, 1961 has to be computed separately for each unit and losses from some units cannot be adjusted against profits from other units, by following the decision of the Special Bench of the Tribunal in the case of M/s. Scientific Atlanta India Technology Pvt. Ltd. (38 SOT 252 Chennai) (SB) and stating that the view of the Special Bench of the Tribunal has been upheld by the decision of the High Court in the case of M/s. Black & Veatch Consulting Pvt. Ltd. (ITA 1237 of 2011 dated 9.4.2012) (20 Taxmann 727), ignoring that the said decision of the High Court has not been accepted by the Income Tax Department in principle and SLP has not been filed in view of low tax effect? 2Counsel for the parties are agreed that the issues arising herein are covered in favour of the Respondent-Assessee and against the Revenue by the decision of this Court in the matter of M/s. Black & Veatch Consulting Pvt. Ltd. (ITA 1237 of 2011 dated 9.4.2012) (20 Taxmann 727). In these circumstances, we see no reason to entertain the proposed questions of law. 3Accordingly, appeals are dismissed with no order as to costs. (M.S.SANKLECHA,J.) (J.P.DEVADHAR,J.)