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2018 (9) TMI 1629 - HC - Income TaxReallocating expenditure/income on account of royalty from Jammu Unit to Corporate Division - entitlement to deduction u/s 80-IB - Held that:- Tribunal observation that “however due to some unforeseen reasons the assessee could not use the technical know-how neither at Jammu Unit nor at any other units.” is without considering the findings recorded by the Assessing Officer. The Assessing Officer with reference to the nature of the sachet pouches manufactured at the Jammu Unit had held that the assessee had manufactured and produced the sachet pouches using the technical know-how provided in terms of the MoUs. The Tribunal reversed the said finding without any discussion and explanation to arrive at a completely contrary view accepting the contention of the respondent-assessee. No reason and ground have been recorded why the finding of the Assessing Officer was incorrect or wrong. Thus the matter requires reexamination by the Tribunal on the question, whether the Jammu Unit had utilized the technical know-how provided to the respondent-assessee company under the MoUs. Till this core and important aspect and question is decided, we cannot proceed and decide, the other question whether the expenditure on royalty was incurred by the Jammu Unit or the Corporate Office. - Decided partly in favour of revenue for statistical purposes.
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