Sec. 10AA Eligible unit’s loss can be set off against income of other units

Undisputedly, the assessee has claimed business loss of Rs.3,90,35,968/- from MEPZ Unit at Chennai, eligible for deduction u/s 10AA. It is also not in dispute that assessee has claimed set off of this loss against the income from other units. AO proceeded to hold that loss from MEPZ unit at Chennai, which is eligible for deduction u/s 10AA, was not eligible to be set off against the profits from other units. However, ld. CIT (A) granted the relief to the assessee by relying upon the decision rendered by Hon’ble Bombay High Court in M/s. Hindust

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