2000 (10) TMI 326

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....vocate, for the Respondent. [Order per : S.S. Sekhon, Member (T)]. - This appeal is against the order of the Commissioner (Appeals) wherein for goods captively consumed he has fixed margin of profit at 5% after finding out that the net profit earned after deduction of the permissible deduction such as depreciation, development rebate and taxation from the gross profit ranges between 3.05% to....

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....ter considering the depreciation percentage for 13 years period in the present case and determining the weighted average which worked out to be 7.72 and 8.94% respectively, compared with the profit for DCW Ltd. as a whole as per the audited balance sheet to be 7.72% would be appropriate profit margin after fixation of the same as notional profit margin instead of 5% as arrived at by the Collector ....

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....in of 2% was found to be not excessive in the facts and circumstances and the ratio of that decision can be applied to the present case also. 5. We have considered the submissions and the facts in this case and we find that Income Tax is not a permissible deduction under Section 4 and therefore cannot be considered to be a permissible deduction under the Rule 6(b)(ii) of the Valuation Rule....