TaxTMI 
TaxTMI 
2011 (1) TMI 42
X X X X Extracts X X X X
X X X X Extracts X X X X
....facts and in the circumstances of the case and in law, the CIT (A) erred in directing the Assessing Officer to exclude the amount of sales-tax and excise duty from the total turnover for the purpose of computation of deduction u/s.80HHC of the Act relying upon the decision of the Bombay High Court in the case of Sudarshan Chemicals Industries Ltd. (245 ITR 769) which has not been accepted by the department and contested by way of filing SLP. 2. On the facts and in the circumstances of the case and in law, the CIT (A) erred in directing the Assessing Officer not to deduct 90% of miscellaneous receipts by way of recovery of R&D expenses, recovery of octroi and freight brokerage, sales tax set off, technical service fees, write back of cred....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of the receipts in terms of clause (baa) of Sec.80HHC (4C) and is now covered in favour of the revenue by the decision of the Hon'ble Supreme Court in the case of K. Ravindranathan Nair 295 ITR 228. 5. On the other hand, the ld. counsel of the assessee submitted that nature of expenses has not been examined by the AO in detail and some of the items are simply reimbursement of expenses and/or recovery of expenses incurred earlier and, therefore, she will have no objection if the whole issue is re-examined. 6. After considering the rival submissions, we find that the nature of expenses has not been examined by the lower authorities. Therefore, in the interests of justice, we set aside this issue to the file of the AO with a directi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....r than arm's length price and, therefore, an adjustment was made for a sum of Rs. 34,32,620/- for various items. 10. On appeal, addition in respect of item Lipoderm Liquor, was deleted by the ld. CIT(A) because he found that there was sale to only one other party by the AE but the same was for a bulk quantity. Similarly, addition in respect of Capro Tablets was also deleted, because AE has supplied the above consignment through a public sector undertaking i.e. M/s Project Engineering Company Ltd, and the same was not comparable. The revenue has not filed an appeal in respect of these two transactions. 11. As far as the other transactions are concerned, the addition has been confirmed by the ld. CIT(A). 12. Before us, the ld. co....
X X X X Extracts X X X X
X X X X Extracts X X X X
....of time when the order was placed, but no evidence was filed before us, and when a specific query was raised in this regard, ld. counsel of the assessee showed her inability to produce any evidence. Therefore, clearly the price paid by the assessee in respect of these items is on higher side and TPO has correctly determined the arms length price and accordingly we confirm the addition in respect of this item. 15. As far as item Luwax OA Pastille is concerned, it is clear that to other parties the price charged was 1.03 Euro whereas the price charged to the assessee was 1.05 US dollar. Firstly, since different currencies are involved, these prices are not comparable. In any case, the value of one Euro is definitely much more than the valu....