TMI Blog2018 (12) TMI 219X X X X Extracts X X X X X X X X Extracts X X X X ..... o the conclusion that profit at Pondicherry would be ₹ 3,50,17,424/-. Therefore, the entire income was confused as profit earned at Pondicherry Unit. Keeping the contentions in mind, we are of the view that the Tribunal should have considered the contentions as advanced before it. Tribunal being an appellate forum did not appropriately consider the reasons assigned by the AO. Non-consideration of all the contentions and without any discussion would render the order of the Tribunal to be interfered with. Therefore, it is only just and necessary that the impugned order of the Tribunal be set-aside, by remanding the matter to the Tribunal for a fresh consideration in accordance with law. Substantial question of law is answered by h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Tribunal set aside the orders of the Assessing Officer as well as the Commissioner of Income Tax (Appeals) and upheld the claim of the assessee, while directing the Assessing Officer to compute the deduction under Section 80-IB of the Act. Aggrieved by the same, this appeal is filed by the Revenue. 2. By the order dated 3-8-2009, the appeal was admitted to consider the following substantial questions of law: i. Whether the Tribunal was correct in holding that the assessee would be entitled to claim of deduction under Section 80IB of the Act despite the categorical finding recorded by the Assessing Officer and confirmed by the Appellate Commissioner that no profit was earned by the assessee from its trading and manufacturing ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nor has it computed the income of the Pondicherry Unit on any cogent and coherent basis. When there is a gross profit of about 22.5% from trading/manufacturing activity, there is no profit from these activities as the entire net profit has come from other income. Therefore, no net profit can be assigned even to the manufacturing unit at Pondicherry. Even if 50% expenses is allowed on earning other income , the net income to ₹ 129 million which is still higher than the net profit of the entire business at 389 million. Therefore, once there is no net profit, there cannot be deduction under Section 80-IB of the Act. The Commissioner of Income Tax (Appeals), firstly, took note of the fact that various claims were sought by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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