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of <h1>Tribunal allows Revenue's appeal on deductions, remands burning loss issue for further assessment</h1> <h3>The Income-tax Officer, Ward-2 (5), Ahmedabad Versus Reclamation Welding Pvt. Ltd.</h3> The Tribunal partly allowed Revenue's appeal, maintaining deductions u/s 80IA and expenses, while remanding the excess burning loss issue for further ... - Issues involved: Appeal by Revenue challenging deduction u/s 80IA, disallowance of expenses, difference in conversion charges, and excess burning loss.Deduction u/s 80IA:The AO denied the claim of deduction u/s 80IA due to non-furnishing of essential certificate in the prescribed Form. However, the CIT(A) allowed the claim stating that the Audit Report was filed before completion of assessment, relying on precedents. The Tribunal upheld the CIT(A)'s decision, emphasizing technical breach and continuity of circumstances.Disallowance of expenses:The AO disallowed a claim of &8377; 19,45,247/- on freight and octroi expenses based on the agreement terms with the holding company. The CIT(A) noted the expenses were for stores materials, not specified raw materials, and hence deleted the addition. The Tribunal upheld this decision, citing lack of evidence on specific expenses.Difference in conversion charges:The AO sought to tax the variance in conversion charges between the assessee's and principal's books. The CIT(A) observed corrections made by the principal and deleted the addition, emphasizing matching TDS certificates. The Tribunal rejected the Revenue's appeal, relying on corrected figures and the absence of contrary evidence.Excess burning loss:The AO disallowed a claim for excess burning loss, reducing it to 5% from 10.96% based on survey findings. The CIT(A) overturned this decision, noting incomplete data and lack of process knowledge in the survey statements. The Tribunal remanded the issue to the AO for further examination, allowing the Revenue's appeal for statistical purposes.Conclusion:The Tribunal partly allowed the Revenue's appeal for statistical purposes, maintaining deductions u/s 80IA and expenses, while remanding the issue of excess burning loss for further assessment.
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