2015 (10) TMI 1584

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....e case are that the assessee is in the business of manufacturing and selling of energy saving devices and Lighting products. Return of income for the year was filed on 26.10.2007 declaring total income at Rs. 31,29,79,324/-. The return was selected for scrutiny assessment. While scrutinizing the return of income, the Assessing Officer noticed that the assessee has claimed deduction u/s. 80- IC of the Act for its Solan unit. The AO noticed that the sales of Solan unit has been increased by an amount of Rs. 4,98,39,462/- on account of Inter Divisional Sales. The AO found that the total sales of Solan unit is at Rs. 168,01,15,066/- which includes Inter Divisional sales of Rs. 4,98,39,462/-. The AO further found that the profit from this unit h....

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....re filed before the AO or not. If the goods are transferred from Solan unit at 6% discount to listed price, then the stock cannot be valued at cost or at the most the receiving branch must be valuing stock at 6% discount to listed price which means that when the goods were sold from the branch, the branch is making atleast 6% profit. All these aspects have to be verified at the assessment stage. We, therefore, restore this issue to the file of the AO to decide denovo after giving reasonable and fair opportunity of being heard to the assessee. 6. Proceeding further, the AO noticed that part of the Head Office expenses have been attributed towards Solan Unit before claiming deduction. The assessee was asked to explain the basis on which su....

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....sonable and directed the AO to delete the addition of Rs. 5,74,79,168/- 8. Before us, the Ld. DR strongly submitted that once again the Ld. CIT(A) has simply accepted the version of the assessee without verifying the details and calling for any remand report from the AO. The Ld. DR pointed out that at para-5.2 on page-6 of his order the Ld. CIT(A) has considered total sale of Rs. 225 crores whereas on page-7 of the assessment order, the AO has mentioned total sales as shown by the assessee at Rs. 367.44 crores. It is the say of the Ld. DR that such factual discrepancies/differences need to be verified by the AO. 9. We have carefully perused the orders and given a thoughtful consideration to the submissions made by the Ld. DR. We find ....