High Court ruling: Section 80HH(7) not applicable to intra-unit transfers. Market value upheld.

The High Court BOMBAY dismissed the appeal for assessment year 1988-89 regarding a company's intra-unit transfer of goods. The court held that section 80HH(7) did not apply to such transfers, rejecting the Department's argument. The company's valuation of goods at market value, rather than cost, was upheld, and no costs were awarded in the case.

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The High Court BOMBAY judgment for assessment year 1988-89 involved a company's intra-unit transfer of goods. The Assessing Officer valued goods at cost, but the company sold them at market value. The court found no merit in the Department's argument invoking section 80HH(7) as it did not apply to intra-unit transfers. The company did not inflate deductions under section 80HH, and the appeal was dismissed with no costs.

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