2000 (11) TMI 645

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..... ondent. [Order per : S.S. Sekhon, Member (T)]. - This appeal is against the determination of profit to be added under Rule 6(b)(ii) of the CE Valuation Rules, 1975. An amount of Rs. 98.06 lakhs on account of donations, Rs. 0.12 lakhs as unexplained difference in bad debts and Rs. 73.54 lakhs as Miscellaneous income was added to arrive at the profit margin to be determined for adding to the cost .....

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..... ommissioner has recorded the averment made by the appellants before him that the donations was "given out of the profit amounts by the company in order to earn goodwill". Therefore, the Commissioner came to the considered view that donations has to be brought under the category of manufacturing profit and for calculation of which the same cannot be included. He also held unexplained differences in .....

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..... inclusion of the amount as regards donations should be remanded back for re-determination to the lower authorities wherein they will prove that it was an expenditure related to manufacture. 6. We have considered the rival submissions and find that 'donations' whether resulting in profit or loss will arise out of the amounts left with a manufacturer over and above the costs, less the amounts .....

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