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7. We shall now advert to the part disallowance by the A.O of the assesses claim of deduction under Sec.10AA of the I.T Act. As per the facts discernible from the orders of the lower authorities, it stands revealed that the assessee had claimed deduction under Sec.10AA in respect of the eligible units at Rs. 48,13,86,995/-, as against its business income of Rs.32,52,00,938/-. Insofar the difference of Rs.15,61,86,050/- i.e excess of the claim of deduction under Sec.10AA as against the total business income was concerned, the same was partly „set off‟ by the assessee against the Short Term Capital Gain (for short „STCG‟) of Rs.9,42,03,318/-, while for the balance loss of Rs.6,19,82,738/- was carried forward to the subsequent assessment year. The A.O after deliberating on the claim of deduction raised by the assessee under Sec.10AA held a conviction that the same was to be allowed after aggregating the income and loss of various units, irrespective of the fact as to whether the same were eligible or not for the deduction under the other heads. As a result thereof, the A.O backed by his aforesaid conviction quantified the assesses entitlement towards deduction under Sec.10AA, as under:

Business income before deduction U/s 10AA Rs.32,52,00,938/-

       (as per computation)

       Short term capital gain                            Rs. 9,42,03,318/-

       Total income considered for Sec.10AA               Rs.41,94,04,256/-

       Deduction u/s. 10AA out of total claim of          Rs.41,94,04,256/-
       Rs.48,13,86,995/- which is allowed to the
       extent of income available.


                                      M/s. Firstsource Solutions Ltd.,

In the result, the excess disallowance claimed by the assessee under Sec.10AA amounting to Rs.6,19,82,739/- [Rs.48,13,86,995/- (-)Rs.41,94,04,256/-] was disallowed by the A.O and added back to the total income of the assessee.

8. The assessee has assailed the aforesaid restriction of its entitlement towards claim of deduction under Sec. 10AA by the A.O. It is the contention of the ld. A.R that as per the mandate of law deduction under Sec.10AA is to be allowed qua unit wise instead of aggregating profit/losses of all units. As observed by us hereinabove, the ld. A.R in order to buttress his aforesaid contention has drawn support from the judgment of the Hon‟ble Supreme Court in the case of CIT Vs. Yokogawa India Ltd. (2017) 391 ITR 274 (SC). We have deliberated at length on the issue under consideration and find substantial force in the contention advanced by the ld. A.R before us.

In fact, the issue under consideration had came up for adjudication before a coordinate bench of the Tribunal i.e ITAT "F" Bench, Mumbai in the assesses own case i.e Firstsource Solution Ltd. Vs. DCIT 6(2)/ACIT-5(2), Mumbai (ITA No. 4752/Mum/2009, ITA No. 4053/Mum/2008 and ITA No. 2658/Mum/2011) for A.Y 2004-05 & A.Y. 2005-06. The Tribunal after giving a thoughtful consideration to the issue as to whether the profits on STP units were to be adjusted against the loss of non-STP units, had after relying on the judgment of the Hon‟ble High Court of Bombay in the case of CIT Vs. Black & Beatch Consulting Pvt. Ltd. (2012) 348 ITR 72 (Bom) and that of the Hon‟ble Supreme Court in the case of CIT Vs. Yokogawa India Ltd. (2017) 391 ITR 274(SC) had directed the A.O to allow the deduction under Sec.10A of the I.T Act without setting off of loss from non-STP units. In our considered view as the provisions of Sec.10AA are pari materia to those envisaged in Sec.10A, therefore, the view taken by Tribunal in the assesses own case for the aforementioned preceding years i.e A.Y. 2004-05 and A.Y. 2005-06 squarely covers the issue under consideration in favour of the assessee. Apart there from, we find that the contention advanced by the assessee before us that the profits of STP units are not liable for adjustment against the loss of non-STP units for the purpose of quantifying the claim of deduction under Sec.10AA is also supported by the view taken by the Hon‟ble High Court of Bombay in the case of CIT Vs. Black & Veatch Consulting Pvt. Ltd. (2012) 348 ITR 72 (Bom). We thus M/s. Firstsource Solutions Ltd., in terms of our aforesaid observations are of the considered view that the lower authorities had erred in disallowing part of the assesses claim of deduction under Sec.10AA by wrongly aggregating the income and loss of various units while quantifying its entitlement towards deduction under Sec.10AA of the I.T Act. In terms of our aforesaid observations, we vacate the disallowance under Sec.10AA of Rs. 6,19,82,739/- made by the A.O. The Ground of appeal No. 2 is allowed.