TaxTMI 
TaxTMI 
2021 (9) TMI 763
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.... 11, New Delhi dated 29.01.2014 and by the Revenue preferred against order of the Commissioner of Income Tax [Appeals] - 15, New Delhi dated 03.03.2015 pertaining to A.Ys 2008-09 and 2009-10 respectively. 2. Since common issues are involved in the captioned appeals they were heard together and are disposed of by this common order for the sake of convenience and brevity. 3. The common grievance in assessee's appeal relates to the disallowance of deduction made by the Assessing Officer under section 80-IA of the Income-tax Act, 1961 [hereinafter referred to as 'The Act'] at Rs. 5,61,69,752/- as against Rs. 10,48,65,690/- in Assessment Year 2008-09 and upholding disallowance of deduction under section 80-IA of the Act to the extent o....
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....s. 5,61,69,752/- thereby disallowing Rs. 4,86,95,938/-. 7. The assessee agitated the matter before the ld. CIT(A) but without any success. 8. Before us, the ld. counsel for the assessee vehemently stated that the findings of the Assessing Officer that the assessee is not maintaining separate books of account is not correct as the assessee has maintained ERP based account having separate code for each head of expenditure. The ld. counsel for the assessee further stated that the allocation of expenses are based on actual scientific principles and drew our attention to the chart of allocation of expenses and pointed out the basis for allocation of each expenditure. 9. It is the say of the ld. counsel for the assessee that as per the provisi....
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....ficient compliance for the purpose of claiming deduction u/s 10B of the Act. 13. Appeal by the Revenue against this order of the Tribunal was not admitted by the Hon'ble High Court of Delhi vide order dated 01.03.2016 in ITA no. 897/2015. Similar view was taken by this Tribunal in the case of Ranbaxy Laboratories Ltd in ITA No. 196/DEL/2013 wherein this Tribunal has held that maintaining accounts on SAP basis ERP system of accounting tantamounts to maintenance of separate books of account and accordingly, deduction u/s 80IB and 80IC of the Act cannot be denied on the said ground. 14. In so far as the allocation of expenses are concerned, the same can be seen from the following chart: Expense Allocation basis as per AO Allocation ....
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....evenue ratio of eligible and non eligible units whereas the allocation of expenses exhibited hereinabove clearly shows that either they are on actual basis or on revenue ratio basis and some of the expenses are directly attributable to the units. In our considered opinion, allocation is based on actual scientific basis duly certified by the CA in Form No. 10CCB and therefore, the same cannot be faulted with. 16. We further find that this claim is not for the first time but initial Assessment Year of claim is 2007-08 wherein the Assessing Officer has accepted the claim of deduction. In our considered view, unless the claim is disturbed in the initial Assessment Year, the same cannot be disturbed in the subsequent Assessment Years of the blo....