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2011 (1) TMI 207 - HC - Income TaxDeduction u/s 80IB - Assessing Officer noticed that in order to boost up the income of the eligible industrial unit at Adimaly, there was transfer of goods from Theni unit to the Adimaly unit at cost price, accounting profit on sale as attributable to Adimaly unit and claiming the benefit under section 80-IB - the assessment is an agreed assessment and the assessee’s representative in fact did not oppose the partial disallowance by the officer - Held that: We do not know how the Tribunal can direct the Assessing Officer to treat the stock transfer of final products from Theni unit to Adimaly unit at cost price. In fact the finished products on sale obviously gets profits and assessee has also no case that the profit is not derived on the sale of the products. The order of the Tribunal only helps to artificially jack up the profit of eligible industrial unit located in the backward area. - the eligibility for deduction under section 80-IB is only for the profit derived by the eligible unit and therefore the assessee cannot transfer final products from other industrial unit on cost price to inflate artificially the profit of the eligible unit to claim ineligible deduction - Decided in favor of revenue.
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