TMI Blog2016 (4) TMI 475X X X X Extracts X X X X X X X X Extracts X X X X ..... i Kartar Singh, CIT-DR For The Assessee : Shri Ved Jain, CA Shri Ashish Chopra, CA ORDER PER LALIET KUMAR, JM:- This appeal filed by the Revenue is directed against the order of the ld. CIT(A)-XVIII, New Delhi dated 30.10.2014 pertaining to A.Y 2007-08. 2. The solitary ground raised in this appeal read as under: 1. On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in directing the AO to allow deduction u.s 80IC of the I.T. Act, 1961 on market brand value, market value of services and profit attributable to branches. 3. At the time of hearing, at the very outset, it was conveyed to us that the issue raised in this appeal regarding allowing of deduction u/s 80IC of the Income-tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... account of salary and wages is most appropriate measure to ascertain the extent of contribution of any particular place and applied his own. Presumptive base that since 23% of the salary and wages pertains to haridwar hence 23% of the profit will be pertaining to haridwar and rest from others, which is wrong and void and against the provisions of law. On the merit of the case sec-80IC provides that where the gross total income of assessee includes any profit or gains derived by an undertaking from any business referred to in subsection 2. Subsection 2 provides that this section applies to any undertaking or enterprises which has begun or begins to manufacture or produce any article or thing not being an article or thing specified in the xii ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lace other than haridwar, which is the evidence that most the income earning activities resulting in profit to the assessee is being carried out from places other than the eligible unit. We would like to mention here that all the expenses of head office at delhi and branches are booked in the books of head office at delhi and the expenses directly incurred at haridwar are booked in books of haridwar. there is no prohibition in. The Indian accounting standards to book the expenses of head office / branches either in the respective books or books maintained at the registered office. The company could have account for all the expenses in the books of haridwar also as the expenses of the branches and head office were directly related to the bus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ucts have not been manufactured at their works or the profit has not been generated from the manufacturing activity. In the case of CIT vs. V.C.Prakash co. (India) p ltd. (1956) 29 ITR 661 SC has already held that where an assessee carries on the same business at a number of places, There is for the purpose of sec-28 only one business. The Ld. A.O. has also taken the base of the salary as base of earning profit, they have held that since 23% of the total expenditure on salary wages are incurred at industrial undertaking hence 13% of the profit is only for the industrial activity and the balance profit is not from eligible undertaking, if it was not income from this business then it was the duty of the A.O. to prove then what was t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly reduced on presumptions. In consideration of entirely of facts and circumstances we see no justification in CIT (A)'s order retaining the reduction of 10% from the deduction, same is deleted. Revenues ground is dismissed and that of assessee is upheld on this issue. 6. After considering the findings of the ld. CIT(A), we have clearly noticed that the issue raised in this appeal stands fully covered by the order of the Tribunal dated 12.02.2015 wherein the Tribunal has held that merely because the industrial undertaking earned higher profits does not call for an inference that claim of deduction is to be wily nily reduced on presumption. The Tribunal also held that the provisions of section 80IC of the Income-tax Act, 1961 [' ..... X X X X Extracts X X X X X X X X Extracts X X X X
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