9911796707
TMI Blog2024 (1) TMI 214X X X X Extracts X X X X X X X X Extracts X X X X ..... NR 1,13,26,557 to STPI and Non STPI unit even though separate books were maintained for all the units. 2 The Ld. CIT(A) failed to comprehend that Appellant has already allocated the expenses following Scientific & Accounting Principles and Policies to its each separate and Independent Units. 3 The Ld. CIT(A) has grossly failed in understanding that reallocation done by Ld. AO is ultimately amounting to double allocation of expenses to STPI and non STPI unit. 4 The Ld. CIT(A) erred in confirming the order of Ld. AO without having regard to the fact that Appellant has followed the principle of consistency for expenses allocations in lines with earlier years. 5 The Ld. CIT(A) failed to appreciate that only those expenditure which had a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the disputed issue of allocation of common expenses between STPI and non STPI units, the ITAT has restored the issue to the file of the Assessing officer to examine afresh and decide in accordance with law. 3. Whereas, the Assessing Officer (AO) has issued notice u/sec 142(1) of the Act dated 28.08.2017, in compliance to the notice, the Ld. AR of the assessee has appeared from time to time and submitted the details. On the issue of allocation of the expenses, the assessee was called upon to explain the basis of allocation/scientific basis. The assessee has submitted the details vide letter dated 17.11.2017 & 7-12-2017 along with the annexure. The AO has considered the findings of the original assessment, and dealt on facts, procedure of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rect remuneration 3600000 Administrative expenditure 95:5 3420000 180000 10730172 596385 8. Deduction under Section 10A of the Act In view of the discussion in the forgoing paras the deduction under section 10A is determined as under: Sr. No Particular Rs. Rs. 1 Profit 66,26,15,180 Less Corporate Expenditure (including domestic and STP) 1,07,30,172 2 Deduction u/s 10A 65,18,85,008 Re-computation of Income Business Income (as per computation) : 65,26,15,180 Net Other Income : (Rs. 27,70,962-15,38,239) : 12,32,723 Disallowance u/s 14A : 4074 Gross Business Income : Rs. 65,38,51,977 Less Deductio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tween the STPI and non STPI units and the assessee has maintained separate books of accounts. Further the assessee has allocated the expenses following the scientific principles and policies between STPI and non STPI units. Whereas reallocation of expenses by the assessing officer is without any basis or methodology. The Ld. AR further emphasized that the AO in the assessment proceedings has not considered the consistency of expenses allocation adopted in the earlier year. Further the expenditure has direct proximity and nexus with profit of STPI and non STPI Units. On the query from the bench on the consistency of methodology adopted by the assessee, the Ld. AR submitted that the assessee has been following this system of allocation in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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