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2012 (9) TMI 371 - SC - Income TaxDenial of deduction u/s 80HH and 80I for Petrochemical Unit - the basis of allocation of profits amongst the three units as shown in the Computation of Income was not explained - Held that:- Though neither Section 80HH nor Section 80I statutorily obliged assessee company to maintain its accounts unit-wise and that it was open for it to maintain its accounts in a consolidated form in order to put an end to the litigation between the Tax Department and the PSU the case is remitted to the AO to ascertain whether the assessee had correctly calculated its net profits for assessment year 1992-93 in respect of its petrochemical unit for the purposes of claiming deduction under Sections 80HH and 80I. As in the present case, assessee company has prepared its Financial Statements on Consolidated Basis from which it has worked out unit-wise net profits and once such working is certified by the Auditors the net profit computation (unit-wise) could be placed before the AO who can find out whether such profit(s) is properly worked out and on that basis compute deduction under Section 80HH/80 - in favour of assessee by way of remand.
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