2013 (4) TMI 809 - AT - Income Tax

Summary

Issues involved: Appeal against order of CIT(A)-I, Ludhiana for assessment year 2007-08.

Ground No.1: The Assessing Officer questioned sales made to a sister concern at lower rates. Assessee justified the rates based on tax implications and differences in sale conditions. AO added amount to income, but CIT(A) deleted the addition. Tribunal upheld CIT(A)'s decision citing lack of provision to estimate fair market value for such sales.

Ground No.2: AO denied deduction u/s 80IB for various incomes not directly related to industrial undertaking. CIT(A) allowed deduction only for labor receipts. Tribunal confirmed CIT(A)'s decision based on precedent allowing deduction for job work under u/s 80IB.

Ground No.3: AO disallowed bonus and leave wages based on discrepancies in worker statements. CIT(A) deleted the addition after workers confirmed receipt of bonus and leave wages. Tribunal upheld CIT(A)'s decision, noting workers' confirmation and lack of strong basis for disallowance.

In conclusion, Revenue appeal was dismissed, and Cross Objections were withdrawn and dismissed. The Tribunal upheld CIT(A)'s decisions on all grounds, emphasizing adherence to legal provisions and worker statements.