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2014 (9) TMI 18 - HC - Income TaxOrder of the Tribunal u/s 263 – Commission paid u/s 36(1)(ii) – Inflation of profits by booking majority expenses against trading unit for exemption u/s 80IC – Held that:- assessee was maintaining separate books of accounts for the manufacturing unit receipts and expenditure which was exempt under Section 80-IC; and the trading activities - there were certain common expenses, which were to be segregated. Common expenses were/are not unusual, abnormal or unique in such cases - when the AO had adopted one of the courses permissible and available to him, and this has resulted in loss to Revenue; or two views were possible and the AO has taken one view with which the CIT may not agree. Tribunal did record and has reproduced the relevant portions of the notice u/s 143(2) wherein details of the commission paid to related parties, etc. were mentioned - it did not notice the letters/ replies dated 22nd June, 2009, 2nd July, 2009; and, 17th August, 2009, filed before the AO and has observed that the assessee was unable to furnish the details enclosed with the reply or to show that the questions in this regard were asked by the AO - the order of the Tribunal upholding the order of CIT passed u/s 263, cannot be sustained - the Tribunal has not considered the factual matrix or the various documents on record and has not examined the scope of Section 36(1)(ii), the matter is remitted back to the Tribunal for re-examination and re-hearing of appeal – Decided in favour of Assessee.
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