2012 (6) TMI 59

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....he lead matter. The assessee is engaged in the manufacture of die-casted components for automotive manufactures that is, two wheelers and four wheelers. For manufacturing these components specific moulds are required according to the design and physical properties. The manufacturing process and the parameters are accordingly decided. The assessee has in-house moulds manufacturing facility. In case the in-house facility is not able to fulfill the requirements, the moulds are purchased from outside. The requirement of moulds is very high having regard to the number of components produced by the assessee. The moulds have to withstand very high pressure molten metal which is poured inside the cavity in the mould in temperature ranging 700 degre....

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....d the claim in its order passed in ITA No.1122/Del/2005. Following the order of the Tribunal cited above he held that dies and tools were allowable as revenue expenditure. 5. The revenue carried the matter in appeal before the Tribunal which held that the moulds and dies do not have any longevity and therefore they have to be replaced frequently. Such replacement only ensured production of the same quality of parts. They have to be made by the assessee in-house on the basis of specific orders by car and motorcycle manufacturers and when their life is exhausted they have to be destroyed in order to prevent misuse or fakes. The Tribunal felt that in these circumstances the assessee had not obtained any enduring advantage. The expenditure w....

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....xpenditure. The Tribunal has only applied this settled legal position to the undisputed facts found. Therefore no substantial question of law arises for our consideration. The appeals on this point are accordingly dismissed. 7. In respect of ITA No.353 and 355 of 2012 for the assessment year 2006-07 and 207-08 there is one more issue. In these years the assessee claimed that the loss of the 100% export oriented unit covered by Section 10B of the Income Tax Acts, 1961 can be adjusted against the other business income. Taking the assessment year 2006-07, the assessee incurred a net loss of Rs. 1,36,87,803/- in the 100% export oriented unit which was eligible for the benefit of Section 10B. In the return originally filed this loss was shown....