TMI Blog2000 (10) TMI 326X X X X Extracts X X X X X X X X Extracts X X X X ..... on, Member (T)]. This appeal is against the order of the Commissioner (Appeals) wherein for goods captively consumed he has fixed margin of profit at 5% after finding out that the net profit earned after deduction of the permissible deduction such as depreciation, development rebate and taxation from the gross profit ranges between 3.05% to 7.33%. Putting the factual position therefore, he d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eriod in the present case and determining the weighted average which worked out to be 7.72 and 8.94% respectively, compared with the profit for DCW Ltd. as a whole as per the audited balance sheet to be 7.72% would be appropriate profit margin after fixation of the same as notional profit margin instead of 5% as arrived at by the Collector (Appeals). 3. We have considered the submissions of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the ratio of that decision can be applied to the present case also. 5. We have considered the submissions and the facts in this case and we find that Income Tax is not a permissible deduction under Section 4 and therefore cannot be considered to be a permissible deduction under the Rule 6(b)(ii) of the Valuation Rules. Therefore, the deduction against Income Tax, as arrived at in the order o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... containers who are engaged primarily in the business of manufacture and sale of caustic soda and other chemicals. Therefore, we find no reasons to apply the ratio of the above decision to the facts of the present case. 4. In view of the above, we allow the Revenue appeal and fix the percentage of notional profit at 7.72% as claimed by the Revenue in the appeal memo. - - TaxTMI - TMITax - Ce ..... X X X X Extracts X X X X X X X X Extracts X X X X
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