2018 (6) TMI 1093

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....1,84,46,215 by taking the net profit ratio at the rate of the unit which was exempted under section 10AA of the Income-tax Act, 1961 (hereinafter the "Act") ignoring the fact that both the units were engaged in manufacture of similar item and were located in the same area, with the exempted unit only declaring abnormally high profit, for which no satisfactory explanation was put forth by the assessee and further placing reliance upon the decision in CIT v. Calcutta Discount Company Ltd. [1973] 91 ITR 8 (SC), where the facts were different. 2. During hearing, Shri Atiq Ahmad, senior learned Departmental representative, defended the addition by advancing the arguments which are identical to the ground raised. On the other hand, Dr. Shashwa....

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.... 3. Unit at Plot No. 59D in NSEZ, Phase-II, Noida, Uttar Pradesh Income from this unit is eligible for deduction under section 10AA of the Act Deduction has been claimed under section 10AA of the Act 4. Unit at Plot No. 5, SIDCUL Haridwar, Uttaranchal Income from this unit is eligible for deduction under section 80-IC of the Act Deduction could not be claimed under section 80-IC of the Act, since there were losses at the company level 5. Unit at C-8, Selaqui Industrial Area, Dehradun, Uttaranchal Income from this unit is eligible for deduction under section 80-IC of the Act Deduction could not be claimed under section 80-IC of the Act, since there were losses at the company level   Apart from the ....

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....sequently, the draft assessment order was issued by the Assessing Officer, proposing to increase the assessee's income to Rs. 72,35,06,590 vide draft assessment order dated March 30, 2015 . In the impugned assessment order under contention, the Assess ing Officer made the following additions/disallowances to the income disclosed by the assessee's in its return of income :  Particulars Amount Amount Returned income/(loss)   (4,71,75,358) Additions :     (a)Suppressed profits of taxable units at Noida 71,84,46,215   (b)Transfer pricing adjustment 5,22,35,730 77,06,81,945 Total assessed income   72,35,06,587 Total assessed income (rounded off) ....