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TMI Blog2012 (10) TMI 360X X X X Extracts X X X X X X X X Extracts X X X X ..... facts in not allowing the expenses amounting to Rs. 1900/- on account of subscription to club, which though relates to previous year but crystallized and paid during the year. Directions may be given to allow the same as this was crystallized during the year under consideration. 2. That the worthy CIT(A) erred in law and on facts in sustaining the action of Assessing Officer of reducing the claim of deduction u/s 10-B of its 100% EOU to Rs. 83170843/- of its Units at Jalalpur and Lalru by assuming the jurisdiction to reallocate the expenses and further reducing proportionate expenses of managing director's remuneration from the profits of the undertakings which is not authorized by the provisions of section 10B of the Act. Directions may ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at Jalalpur. In respect of Lalru unit, it was 5th year of claim of deduction and in respect of Jalalpur unit, it was 3rd year of claim of deduction under section 10B of the Act. The assessee claimed to have maintained separate books of account in respect of each and every unit. The expenses in each and every unit were debited on actuarial basis. The main unit was garment unit situated at Ludhiana in which the assessee had debited the Managing Director's remuneration of Rs. 2.09 crores. The first plea of the assessee was that no expenses should be reallocated to the eligible units at Lalru and Jalalpur. However, without prejudice to the same the assessee himself admitted that the proportionate expenses of the Managing Director's remuneration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the Revenue placing reliance on the ratio laid down by Mumbai Bench of the Tribunal in Asstt. CIT v. Asea Brown Boveri Ltd. [2007] 14 SOT 18 (Mum.) (URO) relating to assessment year 2006-07 date of decision 5.4.2007 submitted that a reference to any other person in the provisions of the Act implies other units of the assessee. The reliance of the learned A.R. for the assessee is said to be misplaced. 9. We have heard the rival contentions and perused the record. Under the provisions of section 10B of the Act deduction out of profits & gains are allowed to 100% export oriented undertaking from the export of articles or things or computer software for a period of ten consecutive assessment years beginning from the assessment year in which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rdinary profits, which might be accepted to arise in such eligible business. 10. Reading the provisions of section 80IA (8) of the Act it is apparent that the same are applicable only where the goods or services are transferred from the eligible business to any other business carried on by the assessee or vice versa. In the facts of the present case before us, admittedly there is no such transfer of goods or service between different units run by the assessee. The Assessing Officer in the present case has recomputed the eligible profits under section 10B of the Act on account of reallocation of the expenditure of Managing Director's remuneration debited to another unit of the assessee firm, being relatable to the eligible unit. 11. The pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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