https://www.taxtmi.com/caselaws?id=462878 The ITAT Chandigarh allowed the assessee's appeal regarding deduction under section 80IC. The CIT(A) had incorrectly presumed valuation of closing stock was wrong without confronting the assessee or providing opportunity for explanation, thus improperly rejecting the gross profit shown. The assessee demonstrated that indirect expenses (administrative and selling) constituted 4.75% of turnover, and allocating even 1.25% to trading operations would result in losses. The Revenue failed to rebut this explanation or point out any deficiencies. The tribunal agreed no profits resulted from trading operations and the section 80IC deduction related entirely to manufacturing activity profits. Consequently, the disallowance of section 80IC deduction was deleted and the deduction was held to be rightfully claimed. en-us Mon, 28 Dec 2015 00:00:00 +0530 Tue, 22 Jul 2025 20:35:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=462878 The ITAT Chandigarh allowed the assessee's appeal regarding deduction under section 80IC. The CIT(A) had incorrectly presumed valuation of closing stock was wrong without confronting the assessee or providing opportunity for explanation, thus improperly rejecting the gross profit shown. The assessee demonstrated that indirect expenses (administrative and selling) constituted 4.75% of turnover, and allocating even 1.25% to trading operations would result in losses. The Revenue failed to rebut this explanation or point out any deficiencies. The tribunal agreed no profits resulted from trading operations and the section 80IC deduction related entirely to manufacturing activity profits. Consequently, the disallowance of section 80IC deduction was deleted and the deduction was held to be rightfully claimed. Case-Laws Income Tax Mon, 28 Dec 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=462878