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2011 (4) TMI 175 - HC - Income TaxPenalty - Addition - In computation of the income, the assessees showed 45% of Rs.7.40 crores as relating to manufacturing activity, taxable under Section 55 of the Income Tax Act and balance 55% relating to the marketing activity, not liable to be charged to tax - Assessing Officer while arriving at his conclusion regarding the weightage of 38% to the component of non-competing (marketing) and 62% to that of manufacturing he referred to good and valuable literature on the subject. While the work done by the Assessing Officer is appreciable, at the same time, the manner of arriving at this conclusion needs to be deprecated - In this view of the situation, as no defect is pointed out in such observation of CIT(A) that all the points were considered by Earnest & Young in their report for which the another weightage was given by the AO - Assessing Officer if not satisfied could not have substituted his views by discarding the report of M/s.Ernst and Young Pvt. Ltd. without calling for the report of another expert - The issues involved have wide ramifications - Appeals are disposed of by way of remand
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