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TMI Blog2015 (2) TMI 329X X X X Extracts X X X X X X X X Extracts X X X X ..... colour, defects etc., as granite is a natural product and if there is any mole, crack or difference in colour, the same could not be exported and hence there are lot of wastages. The Tribunal while allowing the appeal of the assessee held that the sale of dimensional granite blocks to the assessee by the three companies was 131.37 CBM, whereas the sale of dimensional granite blocks by the three companies to the third parties at 8 to 17 CBM. Hence, the huge volume purchased by the assessee could have tilted the sale price in favour of the assessee. The Tribunal was of the view that based on the conjectures and surmises, the Assessing Officer made comparison of the sale price and reduced the profit while computing deduction under Section 10B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d on the material evidence in the form of tax invoices, showing under billing by related party to the assessee? 4. Is not the finding of the Tribunal that the Assessing Officer had acted under an apprehension of shifting of profits wrong and incorrect, when the Assessing Officer had made a very detailed analysis of the sale prices of the related party's sale to the assessee and the related party's sale to third parties and proved under billing by the related party to the assessee for the purpose of inflating the profits of the unit eligible for deduction under Section 10B? 2. The brief facts of the case are as follows: The assessee is a company engaged in the manufacture and export of granite monuments. The asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4,267 The abstract of transactions involved between these entities in comparison with third parties is tabulated and provided below: Amount Product Sold to CSIPL Sold to others Slabs 39,470 723 Granite Blocks 82,578 10,000 30,000 Kashmir white 2,50,00,000 25,000 Total 2,51,22,048 3. The reasoning given by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring both sides, allowed the appeal filed by the assessee and dismissed the appeal filed by the Revenue holding that it was only an apprehension of the Assessing Officer that the assessee had shifted profits for the purpose of claiming deduction under Section 10B of the Act and the analysis made by the Assessing Officer was not a conclusive proof to decline deduction under Section 10B of the Act. The Tribunal also upheld the order of the Commissioner of Income Tax (Appeals) with regard to the deletion of disallowance made under Section 40(a)(i) of the Income Tax Act. 7. Aggrieved by the said order of the Tribunal, the Revenue is before this Court raising the above-mentioned substantial questions of law. 8. Heard learned Standing Couns ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r all purposes. This assumes importance. It is an admitted case of the assessee herein that the assessee is engaged in the manufacture and export of granite monuments. The business of the other parties is not known. 11. The Tribunal had accepted the plea of the assessee that in granite dimensional blocks trade, price may vary depending upon size of the block and uniformity in colour, defects etc., as granite is a natural product and if there is any mole, crack or difference in colour, the same could not be exported and hence there are lot of wastages. The Tribunal while allowing the appeal of the assessee held that the sale of dimensional granite blocks to the assessee by the three companies was 131.37 CBM, whereas the sale of dimensiona ..... X X X X Extracts X X X X X X X X Extracts X X X X
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