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2017 (10) TMI 939 - HC - Income TaxAddition in respect of deduction u/s. 80IC - profit expenditure relatable to the marketing division and the brand value owned by foreign collaboration should have been disallowed - Held that:- CIT (Appeals) as well as the Tribunal both came to a concurrent conclusion that there was no separate marketing division and therefore, there was no transfer of goods from eligible to non-eligible undertaking. Thus, in absence of any separate marketing division, there could not be separation of profit and expenditure. It was also found that the brand was owned by the foreign collaboration and there cannot be any profit attributable to such brand. More importantly, the Tribunal noted that in the preceding assessment year 2007-08, the assessee had set up such a claim. The Assessing Officer had framed scrutiny assessment during which no disallowance was made. No attempt was made on part of the Revenue either to take such order in revision nor process of reopening of exemption was resorted to.
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