TMI Blog2015 (10) TMI 1584X X X X Extracts X X X X X X X X Extracts X X X X ..... . 80IC to the file of the AO with a direction to decide the issue afresh as per the provisions of law. - Decided in favour of assessee for statistical purpose. - ITA No. 4324/Mum/2011 - - - Dated:- 20-5-2015 - D. Manmohan, VP And N. K. Billaiya, AM,JJ. For the Appellant : Ms Vandana Sagar For the Respondent : None ORDER Per N K Billaiya, AM. This is an appeal by the Revenue preferred against the order of the Ld. CIT(A)-7, Mumbai dt. 18.3.2011 pertaining to assessment year 2007- 08. 2. The Revenue has raised four substantive grounds of appeal. The grievance of the Revenue revolves around the deduction claimed u/s. 80- IC of the Act. 3. Briefly stated the facts of the case are that the assessee is in the busines ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as further explained that the Solan unit transfers goods at branches at 6% discount to listed price whereas the sales are made to the customers at listed price. Thus, for the company, sales are recognized only when the customer is taking delivery as no profit is earned till such stage as stocks at all levels are always valued at cost. The Ld. CIT(A) was convinced with this explanation and deleted the addition. 5. Before us, none attended on behalf of the assessee therefore we heard the Ld. Departmental Representative at length and carefully perused the orders of the authorities below. We find that the Ld. CIT(A) has deleted the addition accepting the entire contention of the assessee without verifying whether details were filed before th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rationale. After considering the facts in totality, the AO proceeded to allocate common expenses in the ratio of sales turnover and made an addition of ₹ 5,74,79,168/-. 7. Before the Ld. CIT(A), the assessee strongly contended that there is no reason to allocate common expenses relating to sales from oil division. The Ld. CIT(A) though convinced by the allocation of expenses in proportion to sale as a reasonable method made by the AO. However, at the same time the Ld. CIT(A) observed that sale of oil division has negligible correlation to the various expenses of head office and branch office and therefore the sale of oil division need not been taken into account and found the allocation in the ratio of 15% and 10% as reasonable an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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