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TMI Blog2016 (1) TMI 27X X X X Extracts X X X X X X X X Extracts X X X X ..... ct to those expenses he had directed to the A.O to apportion the expenses in the ratio of turnover. Before us, Revenue has not brought any material on record to controvert the findings of ld. CIT(A) - Decided against revenue - ITA No.1898/Ahd/2012 - - - Dated:- 24-9-2015 - Shri Rajpal Yadav, JM, Manish Borad, AM. For The Appellant : Shri Narendra Singh, DR For Tbhe Respondent : Shri S. N. Soparkar, AR ORDER PER Manish Borad, Accountant Member. This appeal of the Revenue is against the order of CIT(A) XIV, Ahmedabad dated 21/6/2012 . Assessment was framed by ACIT, Circle-7, Ahmedabad u/s 143(3) of the I.T. Act, 1961( hereinafter referred to as the Act) vide order dated 23.12.2011. Revenue has raised the follow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax exemption and profit from unit no.II [export oriented undertaking (EOU)] is eligible for claiming exemption under section 10B. During the year under appeal the assessee has shown profit of ₹ 86.16 lacs from unit no. I and profit of ₹ 4.3 crores from unit no. II. Unit no.I is also engaged in export sales and almost 80% of the revenue comes from the export sale. The AO noticed that profit ratio of unit no.I is 80% and profit ratio of unit no.II (EOU) is 100% which are not comparable and, therefore, during assessment proceedings he called for various information in relation to production capacity, sales turnover, raw material suppliers, yield, customers range and comparative statement of direct and indirect expenses of unit no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gone through the grounds of appeal in ITA No.50/Ahd/2012 for AY 2008-09, which are as under :- 1. The Ld. Commissioner of Income tax (A) has erred in law and on facts in directing the Assessing Officer to delete the addition of ₹ 1,31,16,642/- made on account of reallocation of expenses relating to raw materials, manufacturing expenses, administrative expenses, selling expenses and financial expenses amongst Unit-I Unit-II in proportion to the sales in these units. 2. The Ld. Commissioner of Income tax (A) has erred in law and on facts in directing the Assessing Officer to apportion only the expenses relating to Consultancy Charges, Income Tax Appeal fee, Membership Fee Professional Tax in the ratio of the turnover of both ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the appeal of Revenue for A.Y. 2007-08 in Assessee s own case in ITA No. 1044/A/2011 the Co-ordinate Bench of Tribunal held as under:- 7.We have heard the rival submissions and perused the material on record. We find that ld. CIT(A) while deleting the addition has noted that no defect or the differences in the product, process, raw materials, end users etc. have been pointed by Revenue and the A.O has proceeded to calculate the income of the 2 units on a wrong assumption. He has further noted that the addition has been made on a hypothetical formula by the A.O. CIT(A) while deleting the addition has also relied on the decisions of Ahmedabad Tribunal and the decision of Hon ble Gujarat High Court which has not been controverted by Reven ..... X X X X Extracts X X X X X X X X Extracts X X X X
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