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2014 (4) TMI 483 - HC - Income TaxAllowability of deduction u/s 80IB of the Act – Requirement to set off of losses - Whether the assessee has disproportionately allocated the common expenses to arrive at more profits for the "eligible units" in order to claim more relief u/s 80IB of the Act – Held that:- This is a factual issue and the assessee was bound to place before the AO necessary documents to establish that the common expenses have not been disproportionately allocated so as to claim more relief u/s 80IB of the Act - no other record was produced by the assessee before the AO - When the matter was considered by the FAA, the FAA had erroneously shifted the burden on the AO stating that the AO did not bring on record any material or evidence to support its conclusion that the expenditure was disproportionately allocated. The onus is on the assessee to produce sufficient records to show that there were no disproportionate allocations and they were under an obligation to show as to how the profits were arrived at in respect of 12 units and particularly in respect of BNR-I and BNR-II for the purpose of claiming deduction u/s 80IB of the Act - The assessment order also does not state as to whether the common expenses were with reference to the 12 units or with reference to the two units alone, which was disproportionately distributed. Relief u/s 80IB of the Act - the order of the Tribunal is set aside and the matter is remitted back to the AO so as to work out the relief properly, particularly with reference to the expenses allocable to BNR-I and BNR-II units – Decided in favour of Revenue.
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