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2011 (3) TMI 679 - HC - Income TaxDisallowed - Amortization of the preliminary expenses - Deduction under Section 35D - Held that:- there is no reason to disallow the same as it is clear that the Revenue had accepted to amortize the aforesaid expense over a period of ten years and, therefore, for all these ten years, the expenditure is eligible for deduction under Section 35D of the Act. No question of law arises. whether there was excess consumption of sugar - s to the ITAT against the aforesaid order. Insofar as the Revenue is concerned, it was aggrieved against the relief given by the CIT(A). The ITAT rejected the appeal of the Revenue and rightly so. As already pointed out above, even if we proceed on the assumption that there was excess consumption of sugar, there was no rational basis for presuming that the respondent would have manufactured more soft drinks and the production of these soft drinks were suppressed. It is an admitted case that the Assessee was maintaining the regular books of accounts and no discrepancy in the books of accounts was found. Assessee is also maintaining the records of stocks. The product of the assessee is also excisable. - Excess consumption is due to excess wastage - decided in favor of assessee.
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