Losses incurred by eligible units u/s 10B not allowed to be set off against income of other units

Brief facts of the case: M/s. Kei Industries Ltd., (hereinafter the “Assessee”) is a Public Limited company, engaged in the business of manufacturing cables, wires and stainless steel wires selling them to public sector companies and Electricity Board. It filed its return of income on 29.09.2008 declaring Rs. 1,49,18,516/- as income for the year under consideration. It was assessed under the provisions of Section 143(3) of the Act. The Assessing Officer (AO) during the assessment proceedings, noticed that: (i)   The Assessee had a hundred per-cent export oriented undertaking (100% EOU) a...