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2010 (11) TMI 497 - AT - Income TaxDeduction u/s 80IC - Held that- the appellants own case the issue has been decided in favour of the appellant by the Ld. ITAT for the earlier years and for the A.Y. 05- 06, following the decisions of Ld. ITAT, have accepted the submission of the appellant - As there is no additional material on record brought by A.O. hence hereby order the A.O. to delete the addition ofRs.82,11,789/- which was not allowed by him as deduction u/s 80IC." - Decided in favour of assessee. Inflated expenses - Assessing Officer disallowed large part of expenses of Faridabad unit - However he has not pointed out as to which particular expenses he has disallowed. Ld. Commissioner of Income Tax (Appeals) also correct in holding that expenses can be disallowed if, either it is bogus expense or if it was not incurred wholly and exclusively for the purpose of business - The Assessing Officer has not pointed out any of the above condition before making disallowance. He has simply applied the ratio of expenses of Kala Amb unit to Faridabad unit and worked out the excess - Here again the Assessing Officer did not even discussed as to why the expense ratio of Kala Amb unit was to be applied to Faridabad unit - Moreover, tribunal in earlier year in assessee's own case have decided the issue of bifurcation of expenses in assessee's favour. Ld. Departmental Representative fairly conceded to this - Decided in favour of assessee.
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