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TMI Blog2012 (6) TMI 266X X X X Extracts X X X X X X X X Extracts X X X X ..... rtunity to explain it and controvert the contents of it – in favour of assessee. Determining the profits exempt u/s 80HH & 80-I - Mode of apportionment of expenditure – Held that:- As in assessment proceedings no details of expenses were furnished by the assessee to establish that the particular expenses were incurred in its particular unit out of its two units -thus in the absence of any details being made available by the Assessee the expenses incurred in the various heads are required to be treated for both the units - Tribunal attempt in order to arrive at a just figure of expenses of each unit the expenses to be bifurcated and divided in the ratio of turnover of both the units is acceptable- in favour of the Revenue. - I.T.R. No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anufacturing process. The plant was operational for almost 15 months till it was severely damaged due to an accident which occurred on 26.05.1991. As the plant was insured with the New India Assurance Company Limited, on a claim for damages being made by the Assessee the survey of the plant was conducted by the Surveyor of the Insurance Company in order to assess the damage caused and the loss suffered by the Assessee. In the meantime in the assessment proceedings the Assessee claimed expenses of Rs.16,47,766/- incurred by it for the repairs of the damaged plant and charged the same in the profit and loss account. The Assessing Officer was not satisfied with the explanation offered by the Assessee about the charging of the repair expenses i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... books, periodicals, Diwali expenses, professional charges, vehicle expenses, telephone and trunk call expenses, Director's travelling expenses in the assessee Prestige Food Industries. The nominal expenses were debited in the account of its second unit viz Prestige Soya Industries. The Assessing Officer asked the assessee to submit explanation of the aforesaid disproportionate allocation of miscellaneous expenses. The Assessee submitted its explanation but the Assessing Officer was not satisfied with the same and vide order dated 27.03.1995 bifurcated the expenses by dividing it in the ratio of turnover of both the units of the Assessee. Feeling aggrieved the Assessee filed an appeal before the CIT (A). The CIT (A) dismissed the appeal vide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uced by the Assessee as he considers to be false, yet if he proposes to make an estimate in disregard of that evidence he should in fairness disclose to the Assessee the material on which he is going to found that estimate; and that in case he proposes to use against the Assessee the result of any private inquiries made by him, he must communicate to the Assessee the substance of the information so proposed to be utilized to such an extent as to put the Assessee in possession of full particulars of the case he is expected to meet and that he should further give him an ample opportunity to meet it. The Income Tax Officer is not bound by any technical rules of the law of evidence. It is open to him to collect materials to facilitate assessmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rough the orders of the Assessing Authority we find that in the assessment proceedings no details of expenses were furnished by the assessee in order to establish that the particular expenses were incurred in its particular unit out of its two units. In the circumstances, in our considered view in the absence of any details being made available by the Assessee to establish that the particular expenses were incurred for its particular unit out of its two units, the expenses incurred in the various heads are required to be treated for both the units and thereafter in order to arrive at a just figure of expenses of each unit the expenses have to be bifurcated and divided in the ratio of turnover of both the units. This exactly has been done by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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