Set-off of Sec 10B units loss against profits from other units al­lowed

CIT Vs. Galaxy Surfactants Ltd, Bombay High Court The assessee, Galaxy Surfactants Ltd had a 100% Export Oriented Unit (EOU) which was entitled to a deduction u/s 10B. For AY 2005-06, the assessee set-off loss incurred in eligible EOU unit against profit from non-eligible unit. The Assessing Officer (AO) denied set off of loss, contending that the deduction was undertaking specific. On appeal, ITAT relying on decision of co-ordinate bench of Delhi in Honeywell International (India) Pvt Ltd [108 TTJ (Del) 924], allowed the set off of loss of eligible unit against the profit of non eligible unit...