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2016 (6) TMI 1224 - AT - Income TaxAddition on account of excess deduction claimed u/s 80-IC - AO has invoked the provisions contained u/s 80-IC read with section 80-IA (8) & (10) by returning the finding that there is inter-unit transfers between the related units at Baddi and Delhi which is clear from unnatural profit ratio of 80-IC unit and non 80- IC unit and is verifiable from the accounts of the assessee’s own related concern - Held that:- There is not an iota of material on the file to prove the inter-unit transfers between the related units of the assessee, one situated at Baddi, Himachal Pradesh, and another situated at Delhi. Moreover, when correctness and completeness of the audited books of account has not been disputed, merely disputing the trading result on the basis of higher gross profit ratio is not permissible under law. When AO has also not returned any specific findings that there was some arrangement between the assessee unit, an 80-IC unit and his non 80-IC unit situated at Delhi to carry out such transfer of goods, the question of invoking provisions contained u/s 80-IA (8) & (10) does not arise. We are of the considered view that the AO has invoked the provisions contained u/s 80-IC read with section 80-IA (8) & (10) on the basis of conjectures and surmises only without having an iota of material on record and as such, the question is answered in favour of the assessee.
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