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2017 (5) TMI 476 - AT - Income TaxDisallowance u/s.10B - Held that:- When it is found that at the relevant time the Development Commissioner granted the approval of 100% EOU in favour of the assessee-Company, which came to be subsequently ratified by the Board of Approval and as observed hereinabove as such the ratification shall be from the date on which the Development Commissioner granted the approval, both the learned CIT(A) as well as the learned Tribunal have rightly held that the assessee was entitled to deduction under Section 10B of the Act as claimed. We confirm the view taken by both the authorities below holding that the assessee was entitled to 100% EOU as claimed. See PCIT, GANDHINAGAR Versus ECI TECHNOLOGIES PVT. LTD [2015 (5) TMI 230 - GUJARAT HIGH COURT] Disallowance on account of write-off of trade advances - Held that:- There is no dispute that the assessee has actually written off ₹ 13,98,298/- being advance to the supplier. There is also no dispute relating to the return of moulds by the assessee on finding them not suitable for the purposes of its business. The undisputed fact is that the advance of ₹ 13,98,298/- was given by the assessee in its ordinary course of business. Therefore, any write off is a business loss incurred in the ordinary course of its business. Therefore, we do not find reason to interfere with the findings of the ld. CIT(A). Transfer Pricing adjustment - Held that:- After giving a thoughtful consideration to the orders of the authorities below and after understanding the factual matrix, we fail to understand how the assessee is expected to explain the quantification of the varying difference in the discount given by two unrelated parties. The assessee could not have approached the two unrelated parties and have asked them to explain why they were giving discount to the assessee. The upward adjustments made by the TPO are uncalled for and, therefore, calls for no interference with the findings of the First Appellate Authority. Revenue appeal dismissed.
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