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TMI Blog2013 (7) TMI 91X X X X Extracts X X X X X X X X Extracts X X X X ..... the goods - Tribunal deleted the addition on account of cost of goods estimated by the Assessing Officer - Held that:- when the purchases are made together for both export and domestic sales, direct cost of the purchase need to be bifurcated on pro rata basis. Deletion of disclaimer amount - Tribunal deleted the disclaimer amount worked out by the Assessing Officer for eligible deduction under section 80HHC - Held that:- Tribunal has merely followed its own order of the earlier year, which has been accepted by the Revenue - Tribunal restored the file to the Assessing Officer for working out deduction under section 80HHC considering the division-wise profitability on the basis of turnover/profit as adopted in the earlier years. Freigh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t in law and on facts in deleting the disallowance of Rs.6,08,326/- being exchange rate difference pertaining to earlier years for the purpose of export turnover? [B] Whether the Appellate Tribunal is right in law and on facts in deleting the addition on account of cost of goods estimated by the Assessing Officer in the assessment order, without giving any reasons? [C] Whether the Appellate Tribunal is right in law and on facts in deleting the disclaimer amount of Rs.4,76,10,309/- worked out by the Assessing Officer for eligible deduction under section 80HHC? [D] Whether the Appellate Tribunal is right in law and on facts in directing to allow freight expenses beyond custom point amounting to Rs.32,87,842/-? 2. Heard learned counse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase for interference in the order of ld.CIT(A). The reasons are that the basis being the sales in domestic market and export adopted by the AO is not logical. The direct cost related to purchases and, therefore, purchase cost has to be a reasonable basis. It is not identified that distinct types or purchases were made for export and for domestic sale. If purchase are made together both for export and domestic sales then direct cost of the purchases has to be on pro-rata basis of purchases for both the sales i.e. domestic sales and export sales. There can be several reasons for getting more profits in other domestic sales or in export sales and, therefore, sales cannot be a reasonable basis for working out direct cost of purchases. Once ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... legally any reason is pointed out to us to interfere in this issue. 11. As far as Question [D] is concerned, it pertains to the freight expenses beyond the custom point amounting to 12. Assessee claimed the amount of Rs. 32,87,842/- and Rs.1,87,82,039/- as freight expenses on export. Assessing Officer having held that sum of Rs.1.89 crores (rounded off) was expenditure beyond custom point was eligible for reduction from direct expenses but not the sum of Rs.32.87 lakhs which was the freight paid upto the custom point and hence not liable for reduction from direct expenses. However, CIT(Appeals) clarified the entire issue and rendering correct decision directed Assessing Officer to work out necessary relief in favour of the assessee. I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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