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TMI Blog2014 (4) TMI 483X X X X Extracts X X X X X X X X Extracts X X X X ..... O stating that the AO did not bring on record any material or evidence to support its conclusion that the expenditure was disproportionately allocated. The onus is on the assessee to produce sufficient records to show that there were no disproportionate allocations and they were under an obligation to show as to how the profits were arrived at in respect of 12 units and particularly in respect of BNR-I and BNR-II for the purpose of claiming deduction u/s 80IB of the Act - The assessment order also does not state as to whether the common expenses were with reference to the 12 units or with reference to the two units alone, which was disproportionately distributed. Relief u/s 80IB of the Act - the order of the Tribunal is set aside and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also claimed relief under Section 80HHC of the Act in respect of its export turnover. By virtue of such notification, the assessee filed the return of income under Section 80IB of the Act pertaining to eligible business declaring a total income at nil and book profit under Section 115JB of the Act at Rs.1,69,33,642/-. The assessee's case was taken up for scrutiny and notice under Section 143(2) of the Act was issued. After scrutiny of the details furnished by the assessee and after discussion, the assessment was completed by order dated 29.03.2005. The Assessing Officer, held that the assessee had segmented the accounts and furnished separate profit and loss account for each of the 12 units. The units at Chennai, BNRI and BNR-II and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... operation on 1.7.96 and the second unit was eligible at 100% of its profits and gains, derived. The assessee relied on the decision of the Honble Apex Court in the case of Commissioner of Income Tax (Central), Madras vs. Canara Workshops P.Ltd.,reported in 161 ITR 320 and contended that in view of the specific provisions of the Act under Sub Section (13) and (5) to Section 80IB neither the provisions of 80AB of the Act nor the decision of Hon'ble Supreme Court in the case of IPCA Laboratories Ltd., (cited supra) are applicable to the assessee's case. The First Appellate Authority after considering the contentions raised by the assessee and after hearing the Revenue held that it is not in dispute that out of the 12 industrial undert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncurred under three heads which have been referred to in the order. The Tribunal by citing Section 80IB(5) and 80IB(13) of the Act held that these provisions provided that losses of other units are not to be adjusted in the assessee's claim to deduction under the said provision for the eligible unit and that the eligible unit for the purpose of deduction under the cited provisions has to be treated as the only source of income of the assessee. The Tribunal further held that the case law cited by the Revenue are in a different context and not applicable to the facts of the case. The Tribunal held that the decision of the Hon'ble Supreme Court in the case of Canara Workshops (supra) supports the assessee's claim. On the above ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not in dispute. The only question would be whether the assessee has disproportionately allocated the common expenses to arrive at more profits for the eligible units in order to claim more relief under Section 80IB of the Act. This being a factual issue the assessee was bound to place before the Assessing Officer necessary documents to establish that the common expenses have not been disproportionately allocated so as to claim more relief under Section 80IB of the Act. Admittedly, no other record was produced by the assessee before the Assessing Officer. When the matter was considered by the First Appellate Authority, the First Appellate Authority had erroneously shifted the burden on the Assessing Officer stating that the Assessing Of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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