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2016 (8) TMI 278 - HC - Income TaxEligibility for the benefit of Section 10B in respect of profit from sale of scrap and spent solution - Held that:- As decided in assessee's own case for AY 2000-01 scrap and spent solution have been generated directly from the manufacturing activity and hence, the Assessing Officer is not correct in excluding these items from the profits of EOU and bringing them to tax under the head 'other sources . From the records it is clear that the scrap and spent solution have been generated directly from the manufacturing activity and. hence profit on sale of such items is derived from the 100% EOU only. After considering the explanation given by the Assessee regarding the generation of scrap and spent solution, we are of the considered opinion that the scrap and spent solution are part of the manufacturing process and the C.I.T.(Appeals) was justified in directing the Assessing Officer to recompute the income/loss exempt under sec. 10B of the Act. - Decided in favour of the assessee. Loss incurred from the Aurangabad unit includible in the EOU - Whether loss cannot be considered as a single undertaking of the assessee along with the EOU at Alathur? - Held that:- On the aspect of treating profit/loss from Aurangabad Unit, to be included in the export oriented unit at Alathur, we are not inclined to accept the contentions of the appellant that the Tribunal has committed an error, in holding that the loss incurred from Aurangabad Unit, to be included in the export oriented unit. The findings of the Tribunal that the Unit at Aurangabad was also an integral part of the export oriented unit at Chennai, cannot be interferred with, though the unit at Aurangabad, was purchased only in the year 2000, whereas, the Unit in Chennai, it was existing from 1994 onwards. - Decided in favour of the assessee.
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