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2019 (2) TMI 1442 - HC - Income TaxTreatment to income of the sale of hybrid seeds - Character of income - as agricultural income exempt under Section 10(1) or commercial income - HELD THAT:- Order of the Tribunal dismissed the Revenue's appeal before it on the above issue following an order of this coordinate bench for Assessment Year 2000-01 in respect of the same respondent assessee. It also notes the binding order in CIT Vs. M/s. Monsanto India Ltd.[2011 (8) TMI 1298 - BOMBAY HIGH COURT] raising the same issue, which were dismissed by this Court - As the impugned order has followed the decision of this Court, no fault can be found with the same -Tribunal was correct in treating its commercial income of the sale of hybrid seeds, as agricultural income exempt under Section 10(1) - Decided against revenue Allocation of expenses amongst two 80IB units - Scientific basis of allocation of corporate expenses as an estimated rate of 10% made by the company - whether no evidence was produced before either the AO or the appellate authorities as against the AO's allocation being based on the turnover of the units? - HELD THAT:- The impugned order records the fact that corporate expenses could not be identified as being incurred in any particular 80IB unit. In the above circumstances, the impugned order of the Tribunal noted the fact that in Note 4 b of the Notes to Accounts, had declared that 10% of the corporate expenses were allocated between the two units in the ratio of production hours utilized by the two plants. The impugned order also records the fact that for the earlier assessment year i.e. A.Y. 200405, the Assessing Officer himself under Section 143(3) of the Act allocated the common corporate expenses at 10% between the two 80IB units. The impugned order of the Tribunal concluded that as the respondent has provided a scientific basis for allocation of expenses and therefore disregarded the allocation of expenses on the basis of turnover - it is not a case of the respondent not formulating the basis of its allocation. The Tribunal found that the basis of allocation adopted by the respondent is more scientific than the allocation being done on the basis of turnover. Thus, a possible view. - Decided against revenue
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