Held that the profit of the export-oriented unit before tax was Rs. 26.11 crores on turnover of approximately 131.97 crores which, in percentage terms was around 19.78 per cent. When compared to the previous year’s figures, there was not much material deviation and the claim to deduction under section 10B of the Income-tax Act, 1961 in the assessment year 2006-07 was accepted. The senior management salaries had been allocated by the Assessing Officer in the ratio of turnover of export-oriented and non-export-oriented units as against the assessee’s allocation of 5 per cent. of total expenses. In the assessment year 2006-07, the Assessing Officer was not convinced with the allocation and in the assessment year 2007-08, the assessee itself had allocated the senior management salary cost in the ratio of sales of export-oriented units and non-export-oriented units. Therefore, there was no merit in the action of the Assessing Officer in reducing the claim of deduction under section 10B of the Act. There was no reason to interfere with the findings of the Commissioner (Appeals). (AY.2004-05 to 2008-09)