TaxTMI 
TaxTMI 
2016 (4) TMI 475
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.... has erred in directing the AO to allow deduction u.s 80IC of the I.T. Act, 1961 on market brand value, market value of services and profit attributable to branches. 3. At the time of hearing, at the very outset, it was conveyed to us that the issue raised in this appeal regarding allowing of deduction u/s 80IC of the Income-tax Act, 1961 ['the Act' for short] stands covered in favour of the assessee by the Tribunal order dated 12.02.2015 passed in assessee's own case for Assessment years 2008-09 in ITA Nos. 3235/Del/2012 & 2309/Del/2012 and others, wherein the Tribunal upheld the ld. CIT(A)'s finding in deleting the addition by relying on its own decision passed in assessee's own case for A.Y 2008-09, whose copies are enclosed. ....
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.... total income of assessee includes any profit or gains derived by an undertaking from any business referred to in subsection 2. Subsection 2 provides that this section applies to any undertaking or enterprises which has begun or begins to manufacture or produce any article or thing not being an article or thing specified in the xiii schedule in the notified area, hence the prime condition of the sec-80IC is that the industrial undertaking should manufacture or produce the goods in the notified area, there is no restriction that the industrial undertaking should carry on all the activities including sale, purchase after sale service, administration etc. on exclusive basis from notified area, it means the manufacturing should be taken place f....
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....ion in. The Indian accounting standards to book the expenses of head office / branches either in the respective books or books maintained at the registered office. The company could have account for all the expenses in the books of haridwar also as the expenses of the branches and head office were directly related to the business earned on from the Haridwar. We have already mentioned earlier that the expenses at the branches were in the nature of salary & business promotion expenses paid to staff engaged in the business of providing sales promotion and after sales services to the products manufactured & sold from Haridwar only. Similarly expenses at the head office at Delhi were in the nature of directors remuneration, audit fees, rent and ....
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....ave held that since 23% of the total expenditure on salary & wages are incurred at industrial undertaking hence 13% of the profit is only for the industrial activity and the balance profit is not from eligible undertaking, if it was not income from this business then it was the duty of the A.O. to prove then what was the source of the income earned from any other activity, the ball was in the court of the A.O. to prove his contention which he has not brought on record any material fact to justify his contention except to apply his presumptions & assumptions, presumptions & assumptions cannot be a base to reject the claim of deductions, statutory allowable to the appellant and to reject the same, the AO is duty bound to bring on record the d....