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TMI Blog2014 (10) TMI 544X X X X Extracts X X X X X X X X Extracts X X X X ..... the business between the eligible units and other units are so arranged that the business transaction between them produces more profit to the eligible business - The AO has not given any adverse finding on the basis of books of account produced by the assessee - The AO has also not pointed out any specific item of the eligible unit which is debited by the head office - assessee is entitled for benefit of Section-80 IA – there was no reason to interfere with the order passed by the Tribunal – Decided against revenue. - Income Tax Appeal No. - 562 of 2012, Income Tax Appeal No. 570 of 2012 - - - Dated:- 17-10-2014 - Hon'ble Tarun Agarwala And Hon'ble Dr. Satish Chandra,JJ. For the Appellant : A. N. Mahajan, S.C.,R.K. Upadhya ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned by the assessee company on account of charge of overdue interest from customers to whom sales were executed from Himachal unit on account of late payment of their dues and also towards bank interest. The total claim for the deduction under Section-80 IA was at ₹ 65,24,023/-, but the A.O. has allowed partial deduction of ₹ 25,93,772/-. The remaining amount was disallowed by the A.O. and the same was upheld by the First Appellate authority. However, the Tribunal has allowed entire claim of the assessee. Being aggrieved, the department has filed the present appeal. With this background, heard Sri R.K. Upadhyay, learned counsel for the department, who has justified the order passed by the A.O. He submitted that in the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vertisement and publicity, packing and forwarding miscellaneous expenses etc. were mostly debited in head office account though they were pertaining to the Sansarpur unit also. The A.O. further applied Global method of computation under Section-80 IA as provided under clause (10) of Section- 80 IA. He readout the provision of Section-80 IA (10) as under:- Where it appears to the Assessing Officer that, owing to the close connection betweent he assessee carrying on the eligible business to which this section applies and any other person, or for any other reason, the course of business between them is so arranged that the business transacted between them produces to the assessee more than the ordinary profits which might be expected to ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... own in the case of CIT Vs. Delhi Press Patra Prakashan Ltd. (2013) 355 ITR 1 (Delhi), it was observed that:- The Commissioner (Appeals) held that the Assessing Officer had not pointed out any instance of the assessee inflating the profits either by charging higher rates or suppressing the expenditure and in the absence of any such instance of manipulation, the Assessing Officer was not correct in recomputing the profits on the basis of estimation. The Tribunal held that the nature of business of the first unit and the fourth unit of the assessee were entirely different and there was no justifiable reason for the Assessing Officer to compare the profit margin of the two units. The assessee had maintained separate books in respect of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rade debtors is deductible under Section-80 IA. In the said case, it was also observed that:- The order of the Assessing Officer was confirmed by the Commissioner (Appeals). The Tribunal directed the Assessing Officer to compute the deduction under section 80-1A of the Act treating the income as business income. Similarly, in the case of Nirma Industries Ltd. Vs. Deputy Commissioner of Income Tax (2006) 283 ITR 402 (Guj.), it was observed that:- Thus, in principle, in reality, the transaction remains the same and there is no distinction as to the source. While computing the special deduction under section 80-I, interest received from trade debtors towards late payment of sale consideration is to be included in the profits of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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