Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (6) TMI 568 - ITAT KOLKATADeduction u/s 80IC - CIT(A) restricting the deduction only at Rs.90,62,385/- in place of Rs.1,14,96,983/- - Assessee is engaged in the business of Engineering running two Units separately one at Faridabad and the other at Rudrapur in Uttaranchal - Held that:- As it is not in dispute that the net profit of the assessee company during the period 31.03.2006 was Rs,.6,30,38,583/- and during the period 31.03.200-7 was Rs.5,10,88,326/-. Thus merely because there was a negative net work of the company does not necessarily mean that the profit generated by the company during the period 31.03.2006 and 31.03.2007 could not have been invested for the purpose of investment in Rudrapur unit. However, at the same time, merely because the loan amount has gradually reduced from 31.03.06 to 31.03.2008 and as because there was profit earned by the company during the years ended 31.03.2006 to 31.03.2008 it cannot be concluded that the investment in the Rudrapur unit was made from the profits so generated only. As the party wise details of the loan on which the interest expenditure of Rs.1,53,25,937/- was incurred by the assessee was not brought on record before us by both the parties & no material to show the purpose for which loan in question was taken by the assessee and how the loan amount for which the interest expenditure was utilized during the period under consideration. The year-wise breakup of investment made in the Rudrapur unit was also not filed by both the parties. Thus in absence of complete details restore this part of the ground of appeal back to the file of the AO for proper verification of the utilization of the loan amount in respect of the interest expenditure - appeal of the assessee is partly allowed for statistical purposes as stated above.
|