Sec. 10A deduction to be computed before setting off the brought forward losses

CIT v. BLACK & VEATCH CONSULTING (P.) LTD

Deduction under section 10A has to be given effect to at the stage of computing the profits and gains of business. This is anterior to the application of the provisions of section 72 which deals with the carry forward and set off of business losses. Therefore, the approach of AO in deducting brought forward losses of ineligible units from section 10A unit is impermissible