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2.4.2 Having decided the question of admission of additional evidence, now the substantive issues are to be decided. The same are discussed in the following paragraphs.

2.4.3 The first substantive issue is whether the appellant was correct in claiming deduction under section 108 of the Act with reference to separate and independent profits of each of the eligible units as against the action of the assessing officer in computing such deduction with reference to business profits of the appellant company as a whole. The AO had observed that all the units were in fact expansion of the same business as they were engaged in, the same line of business as the company and no separate books of accounts have been maintained for these units. He had also raised doubts about the allocation of expenses to these units to 'arrive at the conclusion that deduction could not be calculated in respect of the units separately and therefore he calculated the deduction u/s 108 by aggregating all the profits of eligible and non eligible units and applying the-formula as given in section 108(4) to the. entire profits of the business of the appellant company thereby reducing the deduction substantially. The appellant has made detailed submissions on this ground as summarised/extracted hereinabove. Various evidences to establish separate "identity and independent existence of the eligible EOUs have been furnished from which it appears that these units are independent of each other as well as of the non-eligible units in respect of their licences, location and resources etc. They have got separate approvals from the- STPI Authority for claiming exemption ills 108 of the Act as newly set up 100% EOU and they have also been issued separate export licences by the Customs authorities. These units have separate locations as is indicated from their respective addresses. The appellant has also produced evidences to establish that they have separate fixed assets, plants & machinery and furniture and fixtures etc. Each of the EOUs have independent, separate and distinct operations as indicated in the evidences produced in the form of copies of softex forms, copies of the invoices, copies of foreign inward remittance certificates, copies of custom bonded register maintained by each unit and copies of Monthly performance reports on sample basis. Though separate books of accounts in respect of units have not been maintained in the traditional sense, the appellant has explained that in the ERP Software accounting system implemented by them each and every transaction of each unit is separately coded and therefore all the transactions are identifiable as in the case of separate books. Moreover, the deduction has been claimed' in respect of the EOUs on the basis of the prescribed Audit Report in Form No.56G which also requires the certifying Chartered Accountant to certify the amount claimed as deduction u/s 10B on the basis of examination of the accounts and records of the assessee relating to the business of the eligible undertaking. This report also does not refer to any separate books to be maintained or required to be maintained by the eligible EOU. This issue is also directly covered in the case of DCIT V. Arabian Exports Limited: 109 TTJ 440 (Mum.) as cited by the appellant hereinabove, wherein the Tribunal, upheld the following decision of the CIT(A) :