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2018 (4) TMI 1118 - ITAT KOLKATADeduction u/s. 80IC denied to unit at Dehradun - disallowance on proportionate basis - assessee did not produce the Form 10CCB and has not kept the separate books for the unit at Dehradun - CIT(A) has allowed the claim of the assessee and directed the AO to allow deduction u/s 80IC on the net profit of the Dehradun units as declared by the assessee after reducing the misc. income as taken in the P&L Account - Held that:- AO could not point out any defects in the books of account maintained separately for the Dehradun unit and during remand proceedings when the Form 10CCB was produced before the AO, he could not point out any fault. We also note that there was no material to allege that there was shifting of expenses of eligible unit to non-eligible unit so that higher deduction can be claimed for 80IC unit at Dehradun. The Dehradun unit had new machineries and there were excise exemption also and thus, the profits generated at Dehradun unit cannot be termed as unnatural without any material to suggest the other way; and taking into consideration the results of the previous year also we do not find any infirmity in the order of the ld. CIT(A) which warrants our interference Addition under the head Misc. expenses - Held that:- A sum of ₹ 14,58,007/- was on account of tax against stock transfer. The assessee was asked to explain the nature of such payments and since the assessee failed to offer any satisfactory explanation for the same, the assessee’s claim for such expenses were not allowed by the Ld. CIT(A) and, therefore, he deducted the said amount from the total misc. expenses claimed of ₹ 17,36,842/- and directed the AO to allow only ₹ 2,78,838/-. Against the said order of Ld. CIT(A) the Ld. DR was unable to point out any defect or infirmity which need our interference. Therefore, we are not inclined to interfere with the order of the Ld. CIT(A) and we confirm the same. Claim in respect to custom duty and entry tax - Held that:- As the entire amount was paid during the year itself and there was no outstanding at the year end and thus, the Ld. CIT(A) held that disallowance u/s. 43B of the Act also does not arise. - Revenue appeal dismissed
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