https://www.taxtmi.com/caselaws?id=462880 The ITAT Delhi ruled in favor of the assessee on multiple grounds. Regarding Section 80IC deduction denial, the tribunal held that the AO failed to discharge the burden of ascertaining market value for inter-unit transfers and should have adopted cost plus 10% as determined by the Excise Department. The tribunal confirmed CIT(A)'s deletion of reduction in Section 10B deduction, noting indirect expenses cannot be considered for eligible undertaking profits. For unrealized export proceeds from SEZ units, the tribunal found CIT(A) erroneously applied the wrong RBI Master Circular, as the July 2008 circular applicable to the assessment year had no specific time limit for realization. The tribunal also allowed foreign travel expenses, ruling no disallowance was warranted since fringe benefit tax was paid, and permitted ESIC payments as they didn't constitute penalties for law violations. Finally, Section 14A disallowance was rejected based on sufficient interest-free own funds availability. en-us Mon, 21 Aug 2023 00:00:00 +0530 Mon, 21 Jul 2025 17:56:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=462880 The ITAT Delhi ruled in favor of the assessee on multiple grounds. Regarding Section 80IC deduction denial, the tribunal held that the AO failed to discharge the burden of ascertaining market value for inter-unit transfers and should have adopted cost plus 10% as determined by the Excise Department. The tribunal confirmed CIT(A)'s deletion of reduction in Section 10B deduction, noting indirect expenses cannot be considered for eligible undertaking profits. For unrealized export proceeds from SEZ units, the tribunal found CIT(A) erroneously applied the wrong RBI Master Circular, as the July 2008 circular applicable to the assessment year had no specific time limit for realization. The tribunal also allowed foreign travel expenses, ruling no disallowance was warranted since fringe benefit tax was paid, and permitted ESIC payments as they didn't constitute penalties for law violations. Finally, Section 14A disallowance was rejected based on sufficient interest-free own funds availability. Case-Laws Income Tax Mon, 21 Aug 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=462880