TMI Blog2014 (2) TMI 651X X X X Extracts X X X X X X X X Extracts X X X X ..... ound is allowed. Disallowance of deduction u/s 80HHC of the Act – Held that:- The decision in Ajanta Pharma Ltd. Vs CIT [2010 (9) TMI 8 - SUPREME COURT ] followed - `Clause (iv) of the Explanation to s. 115JB covers full export profits of 100 per cent as "eligible profits" and the same cannot be reduced to 80 per cent by relying on s. 80HHC(1B) - 100% of the export profit should be allowed to be reduced from the book profits for the purpose of computation u/s 115JB - thus, the order on this issue set aside and the matter remitted back to the AO for fresh adjudication. Deletion on account of transfer pricing adjustment made by the TPO – Held that:- The assessee adopted `Cash profit to sales' as PLI in respect of Tooling Division, whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lowing of depreciation at 40% as against 25% on molds used in plastic business. The facts and circumstances of this ground are admittedly similar to those of ground no. 7 for the assessment year 2003-04, which has not been allowed by us in our separate order. Following the view taken for the assessment year 2003-04, this ground is not allowed. 4. Ground No. 2 is against deletion of transfer pricing addition on account of Arms's Length Price amounting to Rs. 2,28,66,074/-. For this year also, the assessee adopted Profit Level Indicator (PLI) of cash profit to sales by applying transactional net margin method (TNMM) in respect of the Tooling Division. The Ld. CIT(A) deleted the addition by giving the same reason as were given by him for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consider it expedient to set aside the impugned order on this issue and remit this matter to the file of the AO for deciding it afresh in the light of the judgment of Hon'ble Supreme Court in the case of Ajanta Pharma Ltd. (supra). 6. In the result the appeal of the Revenue is partly allowed and the CO of the assessee is allowed for statistical purposes. Assessment Year 2005-06 7. First ground of the Revenue's appeal is against the deletion of disallowance of training expenses amounting to Rs. 5,31,500/-. It is noticed that similar issue was involved in the Revenue's appeal for the assessment year 2003-04 through ground no. 5. We have upheld the ld. CIT(A)'s view on such issue thereby dismissing Revenue's ground. Following the same, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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