https://www.taxtmi.com/caselaws?id=175187 Profits of a newly established industrial undertaking eligible for exemption under section 15C of the Income-tax Act, 1922 had to be computed separately on ordinary commercial principles. Where raw material was transferred from the assessee's existing unit to the new unit, its value for exemption computation was the realizable market value at the time of transfer, not the book cost. The rationale was that the exempt undertaking's true commercial profits could be ascertained only by reflecting the actual value borne by that unit. On that basis, inter-departmental transfers were to be accounted for realistically so that the exempt profits were correctly determined. en-us Mon, 06 Sep 1965 00:00:00 +0530 Tue, 10 Nov 2015 14:22:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=175187 Profits of a newly established industrial undertaking eligible for exemption under section 15C of the Income-tax Act, 1922 had to be computed separately on ordinary commercial principles. Where raw material was transferred from the assessee's existing unit to the new unit, its value for exemption computation was the realizable market value at the time of transfer, not the book cost. The rationale was that the exempt undertaking's true commercial profits could be ascertained only by reflecting the actual value borne by that unit. On that basis, inter-departmental transfers were to be accounted for realistically so that the exempt profits were correctly determined. Case-Laws Income Tax Mon, 06 Sep 1965 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=175187