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2016 (4) TMI 1118 - AT - Income TaxMethod adopted for working out the profit - Held that:- The assessee is engaged in the two similar business activities. There were certain common expenditures such as employment cost, administrative cost and depreciation cost which the AO apportioned 100% to the activity i.e. growing and manufacturing of tea leaves of the assessee on the ground that these cost have to be necessarily incurred by the assessee irrespective of any other the business activity. Therefore the allocation of these expenses is not required between the above sources is not required. However the ld. CIT(A) deleted the addition made by the AO. We understand that for any activity of the business several expenses are required to be incurred. The addition has been made by the AO on the surmise that these expenses are fixed in nature. The ld. DR also failed to bring anything on record contrary to the finding of the ld. CIT(A). Hence, we have no hesitation in upholding the order of Ld. CIT(A) and this ground of Revenue’s appeal is dismissed. - Decided in favour of assessee Deduction u/s 80IB - Held that:- The assessee did not submit the relevant details at the time return filing for the deduction under section 80IB of the Act on the presumption that the return of income was filed declaring loss. So there was no point to claim the deduction under section 80IB of the Act. However when the AO framed the assessment under section 143(3) of the Act at positive income then the assessee raised the issue of said deduction. However the same was disallowed by the AO in the absence of sufficient documents in support of the claim under section 80IB of the Act. In the instant case the order of the AO was reversed by the ld. CIT(A) and we upheld the order of the ld. CIT(A). So as a result the loss claimed by the assessee has been restored. Therefore in the event of the loss return filed by the assessee, the question for claiming the deduction under section 80IB of the Act does not arise. Accordingly in our considered view the issue of 80IB of the Act becomes irrelevant for the year under consideration. Therefore we are not adjudicating the same in the light of the provisions of the Act. Hence, we decide this effective ground against Revenue.
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