Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (6) TMI 1112 - AT - Income TaxDeduction u/s 80IA - percentage of profits will be 30% OR 43.50% returned by the assessee - Held that:- CIT(A) confirmed the action of AO in holding that provisions of section 80-IA(10) are applicable. However, she held that profit of the assessee be determined by applying N.P. rate of 30% as against N.P. rate of 43.5% claimed by the assessee, thereby allowing the deduction u/s 80IC at ₹ 25,65,237/-. Taking into consideration all the factual aspects of the case, it is well establishes that there is sufficient material to establish the close of nexus between the assessee and M/s. Fairdeals in manipulating the profit to claim higher rate of deduction u/s 80IA of the Act. The major part of raw materials were purchased from sister concern M/s. Fairdeals and total sales were also made to it. Such arrangements have been made to inflate profit of assessee and claim higher 80IC deductions and avoid the tax payments. In my considered view, the ld. CIT(A) was fair enough to give sufficient relief to the assessee and there is no further scope for any giving any relief to the assessee. Thus the appeal of the assessee is dismissed.
|