Dismissing the appeal of the revenue the Court held that the Tribunal was correct in holding that the brought forward unabsorbed depreciation and losses of the unit, the income of which is not eligible for deduction under section 10B of the Act cannot be set off against the current profit of the eligible unit for computing the deduction under section 10B of the Act. (AY. 2007-08)
CIT v. Ganesh Polychem Ltd. (2020) 120 taxmann.com 270 (Bom.)(HC) Editorial : SLP of revenue is dismissed as withdrawn due to low tax effect, CIT v. Ganesh Polychem Ltd. (2020) 274 Taxman 455 (SC).
S. 10B : Export oriented undertakings-Brought forward unabsorbed depreciation and losses-Not eligible unit-Cannot be setoff against current profit of eligible unit for computing deduction.