The question before the High Court was “ whether on the facts and circumstances of the case and in law, the Income-tax Appellate Tribunal was justified in allowing the losses suffered by newly set up export oriented unit against its other business income “ Dismissing the appeal of the Revenue the Court held that the Tribunal was right in allowing set off of the losses suffered by the newly set up export oriented unit against its other business income. As regards other issues such as payment of management fees, transfer pricing adjustment, closing stock addition, provision for absolute inventory valuation of stock on scientific basis. Order of Tribunal is affirmed. Followed Rotork Controls India.P. Ltd v. CIT (2009) 314 ITR 62 (SC), Hindustan Unilever Ltd. v. Dy. CIT (2010) 325 ITR 102 (Bom)(HC), CIT v. Galaxy Surfactants Ltd (2012) 343 ITR 108 (Bom)(HC).(AY.2005-06)
PCIT v. Sandvik Asia Pvt. Ltd. (2022)449 ITR 312/ 289 Taxman 342 (Bom.)(HC)
S. 10B : Export oriented undertakings-Deduction and not exemption-Set off of losses-Loss from export oriented undertakings-Can be set off against other business income-Payment of management fees-Transfer pricing adjustment-Closing stock addition-Provision for absolute inventory-Valuation of stock on scientific basis-Question of fact. [S. 70, 71, , 92C,260A]