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2015 (3) TMI 769 - AT - Income TaxDisallowance u/s 80IC - allegation that assessee has inflated the receipts in Baddi unit to a tune of ₹ 2039591/- (3650576- 1610985= 2039591) and took undue benefit of deduction u/s 80IC as said by AO - CIT(A) deleted disallowance - Held that:- AO has mechanically proceeded to disallow the sum of ₹ 20,39,591/- merely on the basis of comparative rate of the products between the old unit in Delhi and the new unit at Baddi. AO has failed to establish any of the above pre-requisites, viz. close connection, course of business being d, more than the ordinary profits, for invoking the provisions of the above section. No infirmity in the order of CIT(A) inasmuch as the alleged close relation of assessee and Ranbaxy does not exist. In the absence of establishing such relationship assessing officer has no justification to tinker with the computation of 80IC claim on assumptions and presumptions. The books of account of both the units are separately managed. In view thereof we uphold the order of CIT(A). CIT(A)didnot erred in directing the AO to delete the disallowance of ₹ 20,39,591/- u/s 80IC. - Decided against revenue. Inclusion of amount on sale of scrap in the computation of deduction u/s 80IC - Held that:- CIT(A) in his order has relied on the ratio of decision of Hon’ble Delhi High Court in the case of Sadhu Forging Ltd. ( 2011 (6) TMI 9 - DELHI HIGH COURT ) in allowing the claim. We see no infirmity in the order of CIT(A) - Decided against revenue.
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