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2017 (2) TMI 454 - HC - Income TaxClaim of deduction under section 80IB - whether subsection (10) of Section 80IA cannot be invoked in the facts of the present case to restrict its deduction under Section 80IB on the basis of the profits of the Appellant's wife unit at Valsad? - Held that:- Nothing has been shown by the Revenue that there is any business transacted between Appellant's unit at Jammu and his wife's unit at Valsad which resulted in inflating the profits being earned by the Appellant or that there is any transaction between them. The Tribunal has without considering the validity of the above finding of CIT(A), adopted the test of common customers of both the Appellant's Jammu unit and his wife's unit at Valsad, to conclude that profits of the Appellants, are inflated. Common customers by itself in the absence of some arrangement between the parties does not indicate transfer of profits to Appellant's Jammu unit. The factual finding of the CIT(A) has not been considered by the Tribunal in the impugned order. This issue requires reconsideration by the Tribunal in the context of the appropriate interpretation to be put on Section 80IB(8) and (10) of the Act. Substantial question of law is answered in the affirmative by way of remand. Therefore, we set aside the order of the Tribunal and restore the issue for fresh consideration by the Tribunal, in accordance with law.
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