TMI Blog2010 (11) TMI 601X X X X Extracts X X X X X X X X Extracts X X X X ..... equal number of single pole MCBs - The units located at Jalandhar, Noida and Murthal are old units which are having old machinery in comparison to the newly established unit at Parwanoo which had also given higher rate of profitability - Decided in favour of the assessee - ITA No. 3069/Del/2010 - - - Dated:- 12-11-2010 - Rajpal Yadav, B.C. Meena, JJ. Prakash Chand Yadav, Adv., for the Appellant Rajnikant Gupta, CIT DR for the Respondent ORDER B.C. Meena: This appeal is filed by the revenue against the order of CIT (Appeals)-XV, New Delhi dated 5.4.2010 for the assessment year 2005-06. The grounds of appeal taken by the assessee read as under:- 1. The order of Ld. CIT(A) is wrong, perverse, illega ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Only in the year under consideration, i.e. 2005-06 the Assessing Officer has reduced the claim of the assessee. Assessing Officer had reduced the claim on the ground that no separate books are being maintained for eligible unit, corporate office expenses are not allocated among all the units, stock transfer from eligible unit is being made on higher value and cost of production and other expenses are under stated of eligible unit. The ground that no separate books are maintained and the books of account are not correct is not factually correct. The CIT (A), after considering the assessee's reply, has held that assessee's books of account are reliable and deserves to be accepted and correct. This finding of the CIT (A) has not been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acturing high class of MCBs and RCCBs at Parwanoo unit. This product differentiation had given rise in the value of the product. Thus, allegation of higher value transfer is not correct. The CIT (A) had rightly accepted the claim of assessee. No expenses have been diverted to other unit. Hence, the order of CIT (A) deserves to be sustained. 5.1 He further made written submissions as under:- The AO has alleged that the Parwano unit has not affected any sale rather transferred the goods to the other units. In rebuttal to this finding the assessee, in addition to the findings of the CIT (A), carves to submit as under:- a) That sub section 8 of section 80IA, which applicable mutatis mutandis to section 80IC, by virtue of sub-sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e claim of the assessee on the grounds mentioned herein below. It is further relevant to mention here that claim of the assessee has also been allowed for AY 2007-08 after considering the return u/s 143(3) of the Act. Now the chart of the impugned year is as under:- Finding of AO Submission of Assessee Finding of CIT (A) Contention in brief No separate books of accounts were maintained (see page No. 3 of the AO's order) Assessee raised specific ground via ground no.2.3 before the CIT (A) and the same has been reproduced by the CIT (A) in his order see page no.2 of the CIT (A) order. See Page No.20 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erted to other units and corporate offices. Submission of the assessee are at page 5-6 and 9-10 where in it has been explained that nothing has been diverted to the other concern. In view of the above, it is submitted that the appeal of the department may kindly be dismissed. 6. After hearing both the sides in detail, we find that the assessee was maintaining separate books of account for eligible unit (Parwanoo unit). This aspect had been established by the report of the auditor. The unit is located at tax free zone at Parwanoo and others located at Noida, Jalandhar and Murthal. CIT (A) had rightly accepted this fact in his order. The other basis on which the Assessing Officer r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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