TaxTMI 
TaxTMI 
2010 (11) TMI 601
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....nces of the case and in law, the Ld. CIT (A) has erred in reducing the claim from deduction u/s 80IC of the I.T. Act to Rs.3,48,54,665/- vis-a-vis Rs.9,29,73,713/- disallowed by the A.O. in his order. 3. The Appellant craves leave to add, alter or amend any ground of appeal raised above at the time of hearing. 2. The assessee company is engaged in the business of manufacturing of electrical switchgears and control gear items. The return of income was filed on 31.10.2005 declaring income at Rs.4,25,45,993/-. The assessment u/s 143(3) was completed on 28.12.2007. The claim of assessed u/s 80IC was reduced in the appeal. 3. The only issue involved is regarding reducing the claim from deduction u/s 80IC of the Inco....
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....ficer has not disturbed the profit declared in the books of account. He has only reduced the deduction by invoking the provisions of section 145 of the Income-tax Act. The Assessing Officer's observations that no separate books of account were maintained for Parwanoo unit is factually incorrect. The assessee was maintaining separate books of account for Parwanoo unit. This fact has been established before the CIT (A) which he had rightly accepted. Further on the principle of consistency, the revenue has no ground, the assessee's claim in the preceding assessment year, i.e. 2004-05 and succeeding assessment year 2007-08 had been accepted for both the years. Assessment had been made in scrutiny assessment u/s 143(3) of the Income-tax ....
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.... sister concern, provided that such transfer should be at market value of goods. b) In the instant case the AO has not brought any material on record to show that goods transferred to the sister concern were not at market value. The AO has just alleged that the most of the sales are transferred to the sister concerns as if it is a crime to transfer goods to the sister concern. c) It is submitted that burden is on AO to establish that the assessee has transferred the goods to the sister concern not on market value and in the instant case the AO has not discharged this burden hence his observation is vitiated and deserve to be quashed. d) Even if it is accepted that assessee has just transferred the goods to the ....
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....y incorrect. The corporate office expenses to the extent of Rs.2.25 Crore are not being allocated to all the units. Assessee submitted that the expenses have been allocated on the basis of turnover of the units and the same analogy has been applied in previous year. See submission of the assessee as emerging on page 4 of the CIT (A) order. See page 21 of the CIT (A) order. Where it has been mentioned that the corporate officer expenses have been allocated on the basis of turnover of the units in proportion to the total turn over. Factually incorrect. It is relevant to mention here that in past and in subsequent year the revenue has accepted the profits of the assessee as correct. The stock transfer voucher are being made at a....
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....ve material on record to show that there was over or inflated billing for enhancing the profit. The other ground of revenue that expenses were under-stated to inflate the profit of the tax exempted unit located at Parwanoo is also not proved by any positive and acceptable evidence. Thus, the revenue has also failed to establish that assessee has made over billing in respect of the sales and suppressed the purchases related to eligible unit. The assessee was enjoying tax exemption from central excise duty for eligible unit which had led to the higher rate of profit for this unit. Further there was a product differentiation in the unit located at Parwanoo. The unit located at Parwanoo was manufacturing high class and multiple MCBs, as well as....