Allowing the appeal of the assessee the Court held that the deduction under section 10B of the Act is qua the undertaking and is given in respect of the profits of business of the undertaking whereas the deduction under section 35(2AB) of the Act is given effect at a later stage while computing the total income of the assessee at the entity level. Therefore, the deductions granted under section 10B and section 35(2AB) of the Act are independent. The deduction under section 35(2AB) of the Act is an expenditure-based deduction whereas the deduction under section 10B of the Act is an income-based deduction. Sub-section (6) of section 10B as amended by the Finance Act, 2003 with effect from April 1, 2001 provides that after April 1, 2001, units entitled to deduction under section 10B of the Act are to be treated on par with other units and will also be entitled to deductions available under the Act under sections 32, 35, etc. Hence a 100 per cent. export-oriented company is entitled to deduction of the amount spent on scientific research under section 35(2AB)  ( AY. 2004-05)