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2018 (6) TMI 1093 - AT - Income TaxAddition taking the net profit ratio at the rate of the unit which was exempted under section 10AA - both the units were engaged in manufacture of similar item and were located in the same area, with the exempted unit only declaring abnormally high profit, for which no satisfactory explanation was put forth by the assessee - Held that:- As found by the DRP that taxable units were manufacturing H7 bulbs meant for European market/continent which fetched high profit, whereas H4 bulbs were meant for local market where the returns were low. This factual finding of the learned Dispute Resolution Panel was never contradicted by the Revenue before this Tribunal. So far as managing the business affairs by the assessee to reduce its tax liability the learned Dispute Resolution Panel duly considered the decision from hon'ble apex court in CIT v. Calcutta Discount Company Ltd. (2006 (11) TMI 135 - SUPREME COURT) wherein it was held that it is the discretion of the assessee to arrange its affairs in a manner which advances his interest subject to the conditions that the transaction in question are bonafide. In the instant case, this factual matrix was not doubted by the learned Assessing Officer rather in the remand report it was accepted by the Assessing Officer that "cost of H4 and H7 bulbs reconcile". The learned Dispute Resolution Panel duly considered the remand report and the submissions of the assessee and thereafter reached to a conclusion in which we find no infirmity. We affirm the same. - Decided against revenue
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