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2016 (7) TMI 383 - AT - Income TaxDeduction u/s.80IC - profit attributable to marketing division and brand value to be disallowed or not - Held that:- CIT(A) while deciding the issue in favour of assessee has given a finding that there was no marketing division and, therefore, there was no transfer of goods from eligible to non-eligible undertaking and in the absence of marketing division being a separate undertaking, no profit could be attributed to the marketing activity. With respect to brand value, the ld.CIT(A) has given finding that the same is owned by the foreign collaborator and there cannot be any profit attributable to brand. He has further given a finding that AO had quantified the gross profit attributable to marketing and brand value and disallowance and that since deduction u/s.80IC is claimed in respect of net profit and, therefore, disallowing gross profit attributable to marketing and brand value is not correct and that further, since the marketing expenses debited to the Profit & Loss Account are more than gross profit computed by the AO, that there cannot be any disallowance of deduction u/s.80IC of the Act. Before us, Revenue has not placed any material to controvert the findings of ld.CIT(A). We further find that the assessee had claimed deduction u/s.80IC in AY 2006-07 also and the claim has been allowed in the assessment framed u/s.143(3) of the Act, and that no reopening of assessment u/s.147/148 or u/s.263 has been initiated for withdrawing the claim meaning thereby that the claim of assessee has been accepted by Revenue and has attained finality. - Decided in favour of assessee
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