TaxTMI 
TaxTMI 
2012 (6) TMI 592
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.... of law, for the opinion of this court : "1. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal is right in law in holding that the pro- visions of section 80-I(8) and (9) are not applicable in this case and that the Commissioner of Income-tax (Appeals) was not justified in restoring this issue back to the Assessing Officer for reconsideration ? 2. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal is right in law in holding that no adjustments could be made by the Assessing Officer while working out the deduction under section 80-I of the Income-tax Act in this case ?" 2. Both the question....
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....ear under discussion had shown the said rate at 14.12 per cent. In the opinion of the Assessing Officer, the profits of the spinning unit had been inflated to the extent of Rs. 96,16,477. The Assessing Officer, thus, computed the deduction under section 80-I of the Act at Rs.20,42,020. The assessee noticed that there were certain mistakes in the computation of deduction under section 80-I and, hence, moved an application under section 154 of the Act. The Assessing Officer calculated the relief under section 80-I at Rs. 30,14,523 as against the amount of Rs.20,42,020 calcu- lated earlier. 4. The assessee preferred an appeal before the Commissioner of Income- tax (Appeals) (in short "the CIT(A)") who set aside the order of the Assess-....
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....om the Assessing Officer. The Tribunal, thus, held that there was no justification for the learned Commissioner of Income-tax (Appeals) to have set aside the issue for reconsideration of deduction under section 80-I(8) of the Act. 6. So far as the question of applicability of section 80-I(9) of the Act is con- cerned, the Tribunal accepted the submission made on behalf of the asses- see that the provisions of the said section were applicable only where there were transactions between the assessee and an outsider and not when there were transactions between one unit and the other of the same assessee. The Tribunal, thus, held that setting aside of the assessment order by the Commissioner of Income-tax (Appeals) for deciding the issue of rel....
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.... insig- nificant and very nominal. It is also significant to note that though the transfer rate was slightly less than the market rate, it was still higher than the cost price of the combing unit. 15. In the case of Punjab Con-Cast Ltd. v. Asst. CIT [1994] 49 ITD 430 (Chandigarh), the Tribunal has also held that the Assessing Officer is not empowered to re-allocate the expenses under section 80-I(6) or under section 80-I(8) of the Income-tax Act. We find that for the assessment years from 1986-87 to 1989-90 the assessee has been allowed relief under section 80-I without any interference from or disturbance by the Assessing Officer. The method of accounting has been the same in the earlier years as in the yea....