Pr. Commissioner Of Income Tax(Central)-2 v. M/S Niit Ltd

$~7 IN THE HIGH COURT OF DELHI AT NEW DELHI+ITA 1189/2017 PR. COMMISSIONER OF INCOME TAX(CENTRAL)-2 ..... Appellant Through :Mr Zoheb Hossain, Advocate forRevenue. versus M/S NIIT LTD ..... RespondentThrough :Mr Rohit Jain and Mr AniketD.Agrawal, Advocates. CORAM:HON'BLE MR. JUSTICE S. RAVINDRA BHATHON'BLE MR. JUSTICE A.K.CHAWLAO R D E R%22.12.2017ITA 1189/2017 & CM No.47032/2017(condonation of delay) 1.The sole question of law urged in support of the Revenue’sAppeal in this case is the issue of disallowance of excess deductionsought to be brought to tax on interpretation of Section 10B of theIncome Tax Act, 1961(hereafter referred to as ‘the Act’), by theAssessing Officer(A.O.). 2.The A.O. had disallowed the set off between the losses of theeligible units with the profits of the ineligible units on aninterpretation of Section 10B of the Act. 3.The Commissioner of Income Tax (Appeal) followed the thenprevailing Rule in CIT versus Yokogawa India Limited, 341 ITR 385, which had ruled that the provisions were in the nature of deductionthan exemptions and allowed the set off/adjustment. 4.The Income Tax Appellate Tribunal (ITAT) confirmed thefindings of the Commissioner of Income Tax, taking note of thesubsequent event, whereby the Supreme Court affirmed the Karnatakaview (CIT versus Yokogawa India Limited(supra). 5.Having regard to the fact, the only question is the issue ofabsorption of losses and the treatment as between two categories ofUnits, i.e. eligible units (under Section 10B) and an ineligible one,which is now covered by the Supreme Court Ruling in CIT versusYokogawa India Limited(supra). 6.No question of law arises. The appeal is, therefore, dismissed. S. RAVINDRA BHAT, J DECEMBER 22, 2017 ‘Sn’ A.K.CHAWLA, J