9911796707
TMI Blog2012 (9) TMI 318X X X X Extracts X X X X X X X X Extracts X X X X ..... Held that:- Issue raised in the present appeal is identical to the issue raised in the earlier years and following the same it is held that bifurcation in the income from business and income from undisclosed sources has been carried out by the AO only on presumptions, which have no basis. No merit in the said estimation of income from undisclosed sources. Deduction u/s 80IC is allowed - Decided in favor of assessee - ITA No.509/Chd/2012 - - - Dated:- 27-6-2012 - SHRI T.R. SOOD, AND Ms. SUSHMA CHOWLA, JJ. Appellant by : Shri Manjit Singh, DR Respondent by : Shri Y.K. Sud ORDER PER SUSHMA CHOWLA, J.M, : The appeal filed by the assessee is against the order of the Commissioner of Income-tax (Appeals), Shimla dated 28.02 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 005. While completing the assessment for assessment year 2006-07, deduction U/s 80 IC of the Act was not allowed to the assessee. The Assessing Officer in view of the same did not allow the aforesaid deduction to the assessee for the year under appeal. The C IT(A) following the ratio laid down by the Tribunal in assessee's own case in ITA No. 499/Chd/2009 for the assessment year 2005-06 (order dated 30.11.2009), in ITA No.1158/Chd/2009 for the assessment year 2006-07 ((order dated 29.1.2010), in ITA No.78/Chd/2011 for the assessment year 2007-08 ((order dated 03.03.2011) and in M.A.No.38/Chd/2010 for the assessment year 2006-07 (order dated 22.10.2010) allowed the claim of the assessee. The Revenue is in appeal against the said order of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... termediate, products and residual products which emerge in the course of manufacture of goods." 26. In line with the ratio laid down by the Hon'ble Supreme Courts (supra), we hold that the assessee is carrying on production and the alternative plea of the assessee in Ground No. 3 is allowed." 7. Further, similar claim in assessment year 2006-07 has also been allowed by the Tribunal in ITA No. 1158/Chd/2009 order dated 29.1.2010 and in assessment year 2007-08 in ITA No. 78/Chd/2011 vide order dated 3.3.2011. The facts of the present case are identical to the facts of the earlier years and following our earlier orders, we uphold the order of C IT(A) in allowing deduction u/s 80 IC of the Act. The ground Nos. 1 and 2 of appeal raised by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. No discrepancy had been pointed in the books of account by the Assessing Officer. The books of account of the assessee have not been rejected u/s 145 of the I.T. Act and merely an estimation had been made by the Assessing Officer. The basis for estimation of the net profit ratio is comparison of the results of the assessee company with that of another concern. The comparison of NP GP of the assessee with sister concern M/s Kay Pee Industries is not correct as the products manufactured by two are different. The books of account were produced during the course of assessment proceedings and no defect/s in the same had been pointed out by the Assessing Officer except for the conclusion that the assessee had shown higher profits. The Estima ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... est and salary paid to the partners is without any evidence brought on record to prove the said expenditure being incurred by the assessee. Further, the bifurcation in the income from business and income from undisclosed sources has been carried out by the Assessing Officer only on presumptions, which have no basis. In the absence of any evidence been brought on record by the Assessing Officer to prove that the assessee has incurred so called expenditure and not claimed it in its books of account, we find no merit in the said estimation of income from undisclosed sources. In line with our ratio laid down by the Tribunal in assessee's own case, in Assessment Year 2005-06, wherein the exercise carried out by the then Assessing Officer was hel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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