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2011 (11) TMI 492 - ITAT CHANDIGARHDeduction u/s 80IC - disallowance as capital, control and management of the affairs of the business was that of sister concern – Held that:- For claiming deduction u/s 80IC, undertaking should not be formed by splitting up or reconstruction of business already in existence. Merely because certain purchases are made from the sister concern or the capital was introduced by the partner by way of certain payments on behalf of the assessee does not establish such fact . The said sister concerns are carrying on its activities as before and no part of business has been transferred to the assessee firm. Therefore, assessee is entitled to benefit of deduction u/s 80IC - in favour of assessee. Assessee getting goods manufactured on job work basis - Held that:- The term “Manufacture” is wide enough to include many activities under it. Thus, manufacture through job work qualify for deduction u/s 80IC - in favour of assessee. Validity of invoking provisions of Section 144 - Held that:- Since A.O. found discrepancies in books of account hence, invoking the provisions of section 144 to complete the assessment in a summary manner is justified - against assessee. Difference in sales in bills vs books - Held that:- There is a discrepancy in the sales bill which as per the assessee was corrected by way of cuttings which are reflected in the sales bills forwarded to the party but the duplicate bill was not corrected. The assessee is thus directed to establish its claim by way of any third party evidence and in the absence of the same, the addition in any case, stands confirmed - Issue remitted back to AO for reconsideration - in favor of assessee by way of remand.
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