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2018 (11) TMI 642 - AT - Income TaxRevision u/s 263 - deduction claimed u/s 80IC - CIT has landed and suspicion due to less profit in Vijayawada unit and substantial profit in Rudrapur unit - Held that:- After having examined the details of expenditure and claim made by the assessee at the time of original assessment, there is no reason to suspect the correctness of the claim of the assessee. Merely because of percentage of profit is less in Vijayawada unit and more in Rudrapur plant the assessment made under section 143(3) cannot be held as erroneous. Though CIT was of the view that the assessee has not debited any expenditure in respect of managerial remuneration and less expenditure in the case of power and fuel and NIL expenditure in the case of labour, the same was explained by the assessee stating that no excess expenditure was incurred by the assessee after commencement of Rudrapur plant in respect of managerial remuneration. Similarly, in the case of labour expenditure, the assessee has categorically stated that there was no expenditure relating to the Rudrapur plant. The reason for difference in power & fuel expenses was explained by the assessee stating that Vijayawada unit is supported by backup of DG sets and it was operating electrical flameless furnaces for Vijayawada unit. CIT should not have take up the case for revision basing on the additions made in Assessment Years 2011-12. Each A. Yr. is independent and record also is separate. AO has called for all the details necessary before allowing the deduction under section 80IC and there is no error in the assessment order. The Ld. Pr. CIT was unable to specify any issue which made the assessment as erroneous or prejudicial to the interests of the Revenue - decided in favour of assessee.
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