https://www.taxtmi.com/caselaws?id=126739 ITAT (Chennai) allowed the taxpayer's appeal partly by deleting the AO's reduction of eligible 10B profits by Rs.3.54 crore under s.80-IA(10)/s.10B(7), finding the AO failed to justify or compute "ordinary" profits and transfer-pricing comparability issues. It upheld the CIT(A)'s view that scrap sales are not profits of the 100% EOUs for s.10B purposes and thus not deductible, and confirmed the assessment treating scrap proceeds as income from other sources. The tribunal reversed the allowance of a notional 5% expenditure on interest income, holding no ad hoc deduction is permissible; Revenue's appeal on that point succeeded. en-us Thu, 15 Apr 2010 00:00:00 +0530 Tue, 18 Nov 2025 12:03:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=126739 ITAT (Chennai) allowed the taxpayer's appeal partly by deleting the AO's reduction of eligible 10B profits by Rs.3.54 crore under s.80-IA(10)/s.10B(7), finding the AO failed to justify or compute "ordinary" profits and transfer-pricing comparability issues. It upheld the CIT(A)'s view that scrap sales are not profits of the 100% EOUs for s.10B purposes and thus not deductible, and confirmed the assessment treating scrap proceeds as income from other sources. The tribunal reversed the allowance of a notional 5% expenditure on interest income, holding no ad hoc deduction is permissible; Revenue's appeal on that point succeeded. Case-Laws Income Tax Thu, 15 Apr 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=126739