9911796707
TMI Blog2009 (10) TMI 909X X X X Extracts X X X X X X X X Extracts X X X X ..... PER R.C.SHARMA, AM : These are cross appeals filed by the assessee and the Revenue against the order of CIT(A) dated 24.12.2008 for AY 2003-04, in the matter of order passed by the AO u/s 143(3)/144 of the IT Act. 2. Facts in brief are that assessee is engaged in the business of manufacturing, food processing and infotech. The assessee's case was selected for scrutiny and detailed information w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the plea that assessee was not engaged in the manufacture or production activity. As per AO, assessee was primarily engaged in the growing and exporting mushrooms, which is not industrial activity. The AO also declined claim of expenses in respect of infotech division by invoking provisions of Section 14A read with Section 10A, on the plea that these expenses were in respect of a division, inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .56 crores which had been incurred by consignee for the sale of goods of assessee in USA. The assessee is also aggrieved for disallowing most of the expenses incurred by consignee on behalf of assessee and which has been recovered by the consignee out of the sale proceeds of the assessee in USA. Revenue is aggrieved for the relief given by the CIT(A). 3. We have gone through the orders of the aut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment and for this purpose, he should take into consideration totality of facts and circumstances and the material before him. Though the powers conferred under this section on the AO are wide, the limits of the power are implicit in the expression "best of his judgment". While an estimate is normally inevitable in such kind of assessment, it should not be arbitrary or punitive, but it must ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e considered. Profitability and deduction permissible to such unit is to be looked into independently as per provisions of law. During the course of hearing, both learned AR and learned DR agreed that matter may be restored back to the file of the AO for deciding all the issues afresh. Keeping in view totality of facts and circumstances of case, we restore the appeal to AO and direct the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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