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COMMISSIONER OF INCOME TAX-7 Versus RAJAT DEEP OVERSEAS (P) LTD

2015 (10) TMI 2486 - DELHI HIGH COURT

Deduction under Section 80-IC - Held that:- For the preceding AY 2008-09 also the reduction attributable to the brand had been restricted to 10% by the AO and had been deleted by the ITAT. In the absence of any distinguishing feature having been brought out by the Revenue, the ITAT held that no deduction could be made from the eligible profits on account of the 'brand'.

Whether the income generating activity was only at the works units at Haridwar and not at the head office or branch .....

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t block for the works at Haridwar was ₹ 1,26,80,393.35. The corresponding figures for the year ending 31s March 2009 were ₹ 43,62,243.40 and ₹ 1,20,87,372.35. As regards the branch offices at Bangalore, Mumbai and Kolkatta, the total expenditure figures for the year ending 31st March 2009 were ₹ 2,86,690; ₹ 5,98,981 and ₹ 5,12,949 respectively which even in the aggregate was insignificant in comparison with the expenses of the entire company which was ₹ .....

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015 - S. MURALIDHAR & VIBHU BAKHRU, JJ. For the appellant: Mr. N.P. Sahni, Senior standing counsel with Mr. Nitin Gulati, Junior standing counsel. For the respondent: Mr. Ved Jain with Mr. Pranjal Srivastava, Advocates. ORDER Dr. S. Muralidhar, J. 1. These two appeals by the Revenue under Section 260A of the Income Tax Act, 1961 ( Act ) are directed against the common order dated 12th February 2015 in ITA Nos. 236/Del/2013 and 883/Del/2013 for the Assessment Year ( AY ) 2009-10. 2. The brief .....

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aving a sum of ₹ 59,864 as taxable income. 3. The case was picked up for scrutiny and notice under Section 143 (2) of the Act was issued by the Assessing Officer ( AO ). An assessment order was passed on 30th November 2011 under Section 143 (3) of the Act. In the said order, the AO held that (i) 20% of the sale value of the products was attributable to the brand and hence, was not eligible for deduction; (ii) profit to the extent of 5% of the total turnover of the Assessee was attributed t .....

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[ CIT (A) ] by an order dated 9th November 2012 (i) restricted the reduction of deduction to 10% from 20% as far as issue (i) was concerned; (ii) set aside the order of the AO to the extent that 5% of the sale value was held not to form part of the eligible profit and (iii) set aside the restriction of the deduction to 12% of the remaining profit. 5. As a result of the above order, the Assessee and the Revenue Assessee filed their respective appeals, ITA Nos. 236 and 883/Del/2013, before the ITA .....

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cided for AY 2008-09. As regards issue (iii), the ITAT negatived the contention of the Revenue that the Assessee had also earned income from its branch offices and Head Office and was, therefore, not eligible for any deduction under Section 80-IC of the Act. The ITAT noted that the DR was unable to show any clinching evidence that any income producing activity was carried out from any place other than the eligible unit. The ITAT held that the entire income producing activity stemmed only from th .....

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