TaxTMI 
TaxTMI 
2015 (6) TMI 381
X X X X Extracts X X X X
X X X X Extracts X X X X
....led its return of income declaring a total income of ` 27,41,328/- on 30.09.2009. The return filed by the assessee was initially process under Section 143(1) of the Incometax Act, 1961 (in short 'the Act'). Thereafter, the assessment was completed under Section 143(3) of the Act and the A.O. has disallowed the claim of the assessee under Section 80-IC of the Act and also disallowed mould amortization charges. During the course of assessment proceedings, the A.O. has observed that the assessee has claimed deduction under Section 80-IC of the Act, for the first time, to the tune of ` 5,44,39,211/-. The Form 10BBA filed along with the return of income revealed that the assessee claimed deduction under Section 80-IC of the Act for its u....
X X X X Extracts X X X X
X X X X Extracts X X X X
....as for the financial year 2008-09, the total sales of ` 44.28 crore was attributable to both the units at Chennai & Haridwar. The total sales of ` 44.28 crore for the relevant period got split into ` 23.87 crore for Chennai unit (already existing) and ` 20.41 crore (new unit). It clearly indicates that the profits of Haridwar unit which is allegedly claimed as a new unit by the assessee is nothing but a split up of the assessee's business which is already in existence. (vi) For Haridwar unit, the assessee had recorded a whopping net profit @ 26.41% on the turnover whereas it has recorded only a meager percentage of net profit @ 2.12% on the turnover for the Chennai unit for the relevant period, though the turnover of the Chennai and Haridw....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Details of Asset Amount in ` c/f 22,80,101.00 Control Injection Moulding M/c E C280N 2-B 88,45,112.64 Fixed Asset - Building 4,32,71,138.42 Fixed Asset - Cooling Tower 93,337.50 Fixed Asset - Electrical Weighing Scale 39,375.00 Fixed Asset - Freight Elevator 8,65,200.00 Fixed Asset - Land 69,07,572.39 Fixed Asset - Machinery 42,50,106.00 Fixed Asset - Power Transformer 11,64,375.00 Toshipa Machine Injection Moulding Machine 2,37,65,804.50 Grand Total 9,14,82,122.45 Based on the observation of the above details filed by the assessee, the Ld. CIT(Appeals) allowed the claim of the assessee under Section 80-IC(4) of the Act. 4. On being aggrieved by the order of the Ld. CIT(Appeals), Revenue came in app....
X X X X Extracts X X X X
X X X X Extracts X X X X
....at the assessee has not filed any details with regard to machineries, equipments and assets in respect of newly established Haridwar unit, before the A.O. These details were filed before the Ld. CIT(Appeals). Under these circumstances, we are of the opinion that all the details such as machineries, equipments and other assets purchased/acquired by the assessee, including bills, in respect of Haridwar unit established by the assessee have to be produced before the A.O. The A.O. is directed to decide the issue de novo. 7. In view of the above, we set aside the order passed by the Ld. CIT(Appeals) and remit the matter back to the file of the A.O. for fresh examination. 8. Regarding the other issue raised by the Revenue pertaining to disallow....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d cost paid is being recovered from M/s HUL by way of cost being included in the sale price makes it clear that the said expenditure is not in the nature of capital expenditure. The Ld. CIT(Appeals) held that the amount is paid towards cost of the production and hence provisions of TDS are not applicable. Thus the Ld. CIT(Appeals) allowed this ground raised by the assessee. 10. On being aggrieved, the Revenue is in appeal before the Tribunal. Ld. D.R. submitted that the moulds have enduring benefit since they are not consumed within a year. He also submitted that the payment made to M/s HUL for the moulds supplied by it is in the nature of lease rentals which attract the provisions of Section 40(a)(ia) of the Act. 11. On the other hand, t....