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TMI Blog2015 (10) TMI 2486X X X X Extracts X X X X X X X X Extracts X X X X ..... jal Srivastava, Advocates. ORDER Dr. S. Muralidhar, J. 1. These two appeals by the Revenue under Section 260A of the Income Tax Act, 1961 ('Act') are directed against the common order dated 12th February 2015 in ITA Nos. 236/Del/2013 and 883/Del/2013 for the Assessment Year ('AY') 2009-10. 2. The brief facts leading to the filing of the present appeals are that the Assessee is a manufacturer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eduction; (ii) profit to the extent of 5% of the total turnover of the Assessee was attributed to the past experience, expertise and knowledge, etc. of the related and connected persons and not to the eligible unit; and (iii) only 12% of the remaining income, after making adjustments, was to be considered as eligible for deduction under Section 80-IC of the Act. Accordingly, the AO computed the de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction attributable to the brand had been restricted to 10% by the AO and had been deleted by the ITAT. In the absence of any distinguishing feature having been brought out by the Revenue, the ITAT held that no deduction could be made from the eligible profits on account of the 'brand'. 6. As regards issue (ii), the ITAT approved the view of the CIT (A) on the basis of what was decided for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad office (i.e., other than the Haridwar Unit) for the purpose of deduction under Section 80-IC. The Court also issued notice in the companion ITA No. 628 of 2015 and directed it to be listed along with ITA 540 of 2015. 8. This Court has heard the submissions of learned counsel for the parties. Learned counsel for the Assessee placed before the Court the profit and loss account for the Assessee a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enses of the entire company which was Rs. 9,08,34,838.18 for the same period. Likewise the expenses towards salaries and wages of the branches constitutes a small percentage of the total expenditure of the Assessee on that head. These figures bear out the contention of the Assessee that the income generating activity was only at the works units at Haridwar and not at the head office or branch offi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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