2012 (9) TMI 371

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....t formal amendment within two weeks is accordingly granted. BRPL was a PSU engaged in refinery, petrochemical and polyester staple fibre business. Three different and separate units were set up by BRPL in the financial years 1979-80, 1985-86 and 1988-89 respectively. The three units were engaged in production of separate and distinct types of products. They were three different Industrial Undertakings. It is not in dispute that BRPL was entitled to claim deduction under Sections 80HH and 80I of the I.T. Act, 1961 during the relevant assessment year 1992-93. BRPL could not claim such deduction till assessment year 1992-93 as its net taxable income for earlier assessment years was Nil. It was only in assessment year 1992-93 when the gross ....

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....l relevant details relating to bifurcation of net profits (unit-wise) was placed before the AO who had examined the material placed before him and after detailed investigation had passed the order of assessment and, therefore, show cause notice under section 263 was not maintainable. These arguments of the assessee were rejected by the CIT. To put it briefly, the controversy under Section 263 proceedings was whether the assessee was statutorily obliged to maintain its accounts unit-wise for claiming deduction under Sections 80HH and 80I. That, BRPL had maintained Consolidated Accounts whereas according to CIT, BRPL should have had maintained Segregated Accounts for each of the three units if BRPL wanted benefit of sections 80HH and 80I. Aga....