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2012 (8) TMI 736 - AT - Income TaxDeduction u/s 10A - dis-allowance in respect of three undertaking located at Chinchwad, Akruti and Millennium Business Park - assumption of them being mere expansion of the existing units - Held that:- Issue stands fully covered in favor of the assessee in assessee’s own case for the AY 2002-03 and 2003-04 wherein it was held that merely because the approval letter received from STPI stated the setting up of the three units as an expansion of the corresponding units, cannot be fatal to the plea set up by the assessee that the three units in question are independent and distinct units liable for an independent claim of deduction u/s 10A, since all the prescribed conditions have been fulfilled - Decided in favor of assessee. It is also directed to allow set-off of the losses of the section 10A eligible units against the normal business income of the assessee while computing income as per normal provisions of the Act. Transfer pricing - adjustments u/s 92CA on account of non charging of interest chargeable on excess period of credit allowed to Associated concerns - Held that:- Issue is covered in favour of the assessee in assessee’s own case for AY 2002-03 and 2003-04, wherein it was held that " a continuing debit balance, is not an international transaction per se, but is a result of international transaction". Residuary clause in the definition of ‘international transaction’ does not apply to a continuing debit balance, for the elementary reason that there is nothing on record to show that as a result of not realizing the debts from associated enterprises, there has been any impact on profits, incomes, losses or assets of the assessee - Decided in favor of assessee Deduction u/s 80HHE - exclusion of turnover of overseas branches from export turnover and not from the total turnover - Held that:- If turnover of overseas branches is excluded from export turnover, same needs to be reduced from total turnover - Decided in favor of assessee Computation of interest u/s 234B without considering credit available under DTAA for taxes paid in USA - Held that:- Issue has been decided in favor of assessee in earlier year wherein it was held that interest u/s 234B has to be computed after considering tax credit in respect of the taxes paid abroad. Also, law has been amended to the effect that Explanation (1) to section 234B by the Finance Act 2006 is clarificatory and, therefore, has retrospective application - Decided in favor of assessee.
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