Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

Asstt. CIT, Circle-7, Ahmedabad Versus M/s Ashish Chemicals, Lane

2016 (1) TMI 27 - ITAT AHMEDABAD

Reallocation of expenses incurred amongst Unit-I & Unit- II in proportion to the sales of these units - CIT(A) allowed part relief - Held that:- Given a finding that Assessee has kept separate production record for both the units which indicate the quantitative of raw material consumed and production as per excise law, therefore held that A.O was not justified in re-allocating the expenses in proportion to the sale in both the units. However, with respect to certain other expenses, CIT(A) has no .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

For Tbhe Respondent : Shri S. N. Soparkar, AR ORDER PER Manish Borad, Accountant Member. This appeal of the Revenue is against the order of CIT(A) -XIV, Ahmedabad dated 21/6/2012 . Assessment was framed by ACIT, Circle-7, Ahmedabad u/s 143(3) of the I.T. Act, 1961( hereinafter referred to as the Act) vide order dated 23.12.2011. Revenue has raised the following grounds of appeal:- i) The ld. CIT(A) has erred in law and on facts in directing the AO to delete the addition of ₹ 1,44,72,989/- .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

turnover of both the units. iii) On the facts and circumstances of the case, the ld. CIT(A) ought to have upheld the order of the AO. iv) It is, therefore, prayed that the order of the ld. CIT(A) may be set aside and that of the AO be restored. 2. Briefly stated the facts as culled out from the material on record are that the assessee is a partnership firm involved in the business of manufacturing and trading of synthetic organic reactive dyes and chemicals. The assessee filed its return of inc .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

r under appeal the assessee has shown profit of ₹ 86.16 lacs from unit no. I and profit of ₹ 4.3 crores from unit no. II. Unit no.I is also engaged in export sales and almost 80% of the revenue comes from the export sale. The AO noticed that profit ratio of unit no.I is 80% and profit ratio of unit no.II (EOU) is 100% which are not comparable and, therefore, during assessment proceedings he called for various information in relation to production capacity, sales turnover, raw materia .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

u/s 10B by ₹ 1,44,72,989/-. 3. Aggrieved, assessee went in appeal before CIT(A), who after going through the submissions made by assessee as well as applying his finding on the basis of CIT(A) s appellate order for AY 2008-09 wherein identical facts were there, partly allowed the appeal of the assessee. Aggrieved, Revenue is now in appeal before the Tribunal. 4. Ld. DR relied heavily on the order of A.O. On the other hand, the ld. AR of the assessee brought to our notice that in the case o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ons of ld. representatives as well as the material on record. As referred to by the ld. AR, we have gone through the grounds of appeal in ITA No.50/Ahd/2012 for AY 2008-09, which are as under :- 1. The Ld. Commissioner of Income tax (A) has erred in law and on facts in directing the Assessing Officer to delete the addition of ₹ 1,31,16,642/- made on account of reallocation of expenses relating to raw materials, manufacturing expenses, administrative expenses, selling expenses and financial .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

cer. 4. It is, therefore, prayed that the order of the Ld. Commissioner of Income tax (A) may be set-aside and that of the Assessing Officer be restored. Wherein the co-ordinate Bench dismissed the appeal of Revenue by observing as under :- 9. We have heard the rival submissions and perused the material on record. We find that ld. CIT(A) while granting partial relief has noted that similar addition made by the A.O in the preceding year was not approved by his predecessor in 2007-08 and further A .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     bird's eye view     ↓  


|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version