2011 (1) TMI 207

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....machandran Nair, J. - The only question raised is whether the Tribunal is Justified in cancelling the disallowance of portion of the relief claimed by the assessee under section 80-IB of the Income-tax Act, 1961, in respect of an industrial unit at Adimaly. 2. We have heard senior standing counsel for the appellant and Shri Arun Raj, counsel appearing for the respondent-assessee. 3. The a....

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....t and sold from the Adimaly unit. The assessment is confirmed in first appeal and in second appeal by the assessee, the tribunal held that the assessee was entitled to account transfers of goods from Theni unit to Adimaly unit on cost price basis. This finding of the Tribunal is under challenge in this appeal filed by the revenue. 4. After hearing both sides and on going through orders of the T....

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....t of eligible industrial unit located in the backward area. Admittedly the eligibility for deduction under section 80-IB is only for the profit derived by the eligible unit and therefore the assessee cannot transfer final products from other industrial unit on cost price to inflate artificially the profit of the eligible unit to claim ineligible deduction. After making a claim of Rs. 3,65,98,935 t....