C.I.T vs M/S YOKOGAWA INDIA LTD.

The Supreme Court interpreted Section 10A of the Income Tax Act, 1961, determining that it serves as an exemption provision rather than a deduction provision. The Court held that the income of a Section 10A unit must be excluded from the total income calculation, affirming that losses from other units cannot offset the profits of a Section 10A unit before applying the exemptions. The judgment clarifies the applicability of Section 10B in relation to Section 10A, establishing a consistent interpretation across both provisions.