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TMI Blog2016 (9) TMI 752X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessment proceedings. The AO has not considered the fact that the units in exempted zones are mainly engaged in manufacturing on job work basis where there is either negligible or no input cost of raw material involved. It was noted that if the sales were made using their own raw material, there would be substantial difference in the GP rate insofar as, if the cost of raw material was excluded, the GP rate in all the units would remain the same. The fact that the exempted unit at Haridwar has shown a loss has not been referred to by the AO. Therefore, it is clear that no profit has been diverted to this unit. It was further noted that there has been no investigation or specific exercise to show that the amount claimed as deduction u/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to arise and no sustainable documentary evidence was furnished in this regard or in support of the expenses debited in manufacturing, trading and in profit and loss account was furnished during assessment proceedings; the Ld CIT(A) deleted the said addition. without appreciating the facts of the case mentioned in details in assessment order. 2. That the appellant craves for the permission to add, delete or amend the ground of appeal before or at the time of hearing of appeal. 2. The facts in brief are that the assessee has filed its Return of income showing total income of ₹ 5,34,49,511/- claiming deduction of ₹ 21,36,05,429/- under section 80IC of the Income Tax Act, 1961 (hereinafter referred as the Act). The case was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder and filed the present appeal before the Tribunal. 5. At the time of hearing Ld. DR relied upon the order of the AO and reiterated the contentions raised by the Revenue in the grounds and requested that Appeal of the Revenue may be allowed. 6. On the contrary, Ld. Counsel of the Assessee has relied upon the order of the Ld. CIT(A) and stated that in the assessment years 2005-06 and 2009-10 in assessee s own case, the Ld. CIT(A) has deleted the similar additions which was upheld by the Tribunal. Therefore, he requested that following the consistent view, the addition in dispute in the instant assessment year i.e. 2010-11, may be deleted by upholding the CIT(A) s order and Revenue s Appeal may be dismissed. 7. We have heard both ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mainly engaged in manufacturing on job work basis where there is either negligible or no input cost of raw material involved. If the sales were made using their own raw material, there would be substantial difference in the GP rate insofar as, if the cost of raw material was excluded, the GP rate in all the units would remain the same. The fact that the exempted unit at Haridwar has shown a loss has not been referred to by the AO. Therefore, it is clear that no profit has been diverted to this unit. There has been no investigation or specific exercise to show that the amount claimed as deduction u/s 80-IC was wrong. There is no ground for disallowing claim for job work expenses for the eligibility u/ s 80-IC as the same is allowable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in manufacturing on job work basis where there is either negligible or no input cost of raw material involved. It was noted that if the sales were made using their own raw material, there would be substantial difference in the GP rate insofar as, if the cost of raw material was excluded, the GP rate in all the units would remain the same. The fact that the exempted unit at Haridwar has shown a loss has not been referred to by the AO. Therefore, it is clear that no profit has been diverted to this unit. It was further noted that there has been no investigation or specific exercise to show that the amount claimed as deduction u/s 80-IC was wrong. We find considerable cogency in the finding of the Ld. CIT(A) that there is no ground for disal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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