https://www.taxtmi.com/caselaws?id=456524 Karnataka HC upheld the Tribunal's decision that the AO incorrectly computed profits of assessee's two units by proportionate expenditure allocation based on turnover ratio. The appellate authorities correctly found that assessee had not inflated profits by debiting common expenditure to non-EOU books. Since AO accepted the books of accounts without finding defects, Section 145 invocation was unjustified. The units engaged in different activities - trading versus manufacturing - making turnover-based profit aggregation inappropriate. The Tribunal's findings were deemed just and proper, requiring no interference. en-us Fri, 23 Nov 2018 00:00:00 +0530 Wed, 31 Jul 2024 08:35:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=456524 Karnataka HC upheld the Tribunal's decision that the AO incorrectly computed profits of assessee's two units by proportionate expenditure allocation based on turnover ratio. The appellate authorities correctly found that assessee had not inflated profits by debiting common expenditure to non-EOU books. Since AO accepted the books of accounts without finding defects, Section 145 invocation was unjustified. The units engaged in different activities - trading versus manufacturing - making turnover-based profit aggregation inappropriate. The Tribunal's findings were deemed just and proper, requiring no interference. Case-Laws Income Tax Fri, 23 Nov 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=456524