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2014 (2) TMI 936 - ITAT MUMBAIDeduction u/s 10A or 10B - Held that:- From the order passed by the AO and learned CIT(A), it is observed that the arguments stated in the chart were not taken by the assessee before them - The issue has been restored for fresh adjudication. Pre-commencement expenses - Held that:- No material was brought to the attention of CIT(A) to show that whether Dehradun Unit is proposed to manufacture same item (as being manufactured in existing other units) or different product, business as integrated one has different sources of income - Assessee has not shown in any manner that the Dehradun Unit is being set up to expand production of an item already manufactured elsewhere - The CIT(A) has confirmed the action of the AO to treat the impugned expenses/ loss pertaining to pre-commencement period of new business facility - Decided against assessee. Set off of brought forward business loss - Held that:- Deduction u/s 10A has to be given effect to at the stage of computing the profits and gains of business and the computation should be anterior to the application of provisions of section 72 of the Act - Profits on one unit cannot be set off from the loss of another firm in the process of computation of deduction under section 10A of the Act - The issue has been restored for fresh adjudication in the light of aforementioned judgement. Deduction u/s 10B - Held that:- a deduction of such profits and gains as are derived by 100% Export Oriented undertaking from the export of articles or things or computer software for a period of 10 consecutive assessment years relevant to the previous year in which the undertaking begins manufacture or products articles or things or computer software, as the case may be, shall be allowed from the total income of the assessee - The approval relates to the assessment year relevant to previous year in which undertaking begins manufacture or products articles or things - Decided against Revenue. Product registration charges - Held that:- The expenditure incurred by the assessee on registration of its products was in the Revenue nature - The products once registered are not sold only in that particular year but the sale can be made over a span of time until the renewal of registration is required - The benefit form the said registration of the product is not restricted to the relevant assessment year at the same time the expense is of revenue nature - Decided in favour of assessee.
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