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2021 (9) TMI 1090 - AT - Income TaxDeduction u/s 80-IC - CIT(A) allowing the allocation of common expenses on the basis of net profit ratio of the Units as against the ratio of turnover applied by the AO - HELD THAT:- As relying on case of Corning SAS-India vs. Dy. Director of Income Tax [2017 (6) TMI 287 - ITAT DELHI] allocation of expenses between the units 1, 2 & 3 for the purpose of determination of the allowable revenue expenses in order to compute the profits and gains of the eligible business units of the assessee. We are of the further view that Ld. CIT(A) has erred in allocating the common expense of unit 1, 2 & 3 of the assessee for determination of allowable deductions u/s 80IC on the basis of net profit, hence we reverse the findings returned by Ld. CIT(A) and uphold the findings returned by AO that for determination of the deductions u/s 80IC allocation of common expenses is to be done on the basis of turnover. Addition u/s 14A r.w.r. 8D - exempt income earned by the assessee - CIT-A deleted addition - HELD THAT:- Perusal of the assessment order passed by the AO shows that complete facts have not brought on record as to how much was the exempt income earned by the assessee during the year under assessment; as to whether any interest bearing funds have been used for the purpose of investment so as to apply the provisions contained u/s 14A read with Rule 8D. Even reply filed by the assessee has not been brought on record.CIT(A) has also returned cryptic findings - in view of the matter, we are of the considered view that when complete facts are not on record this issue can not be examined in entirety and as such is remitted back to the Ld. CIT(A) to decide afresh by providing an opportunity of being heard to the assessee. Consequently ground no. 2 is allowed in favour of the revenue for statistical purposes.
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