Tax Treatment of new unit

The existing export company had incurred expenditure to develop one manufacturing unit. Such expenditure like conveyance, courier, telephone , etc in this regard claimed as expenditure in main balance sheet. In the 2nd year, this unit is demerged as separate entity & sold off. The Assessing Officer require justifiable reason to claim the expenditure of manufacturing unit in the main balance sheet (Export).

Please provide me the reason & relevant case law.  

Since the expenses were incurred for your business purpose and as the same was for a division of your company (though the same was demerged later on) it relates to your company only. Each assessment year should be considered as seperate a. y. Whatever happened subsequently does not impact ur current years assessment.