9911796707
TMI Blog2019 (2) TMI 1442X X X X Extracts X X X X X X X X Extracts X X X X ..... correct in treating its commercial income of the sale of hybrid seeds, as agricultural income exempt under Section 10(1) - Decided against revenue Allocation of expenses amongst two 80IB units - Scientific basis of allocation of corporate expenses as an estimated rate of 10% made by the company - whether no evidence was produced before either the AO or the appellate authorities as against the AO's allocation being based on the turnover of the units? - HELD THAT:- The impugned order records the fact that corporate expenses could not be identified as being incurred in any particular 80IB unit. In the above circumstances, the impugned order of the Tribunal noted the fact that in Note 4 b of the Notes to Accounts, had declared that 10% of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se and in law, the Tribunal was correct in treating its commercial income of the sale of hybrid seeds, as agricultural income exempt under Section 10(1) of the Act? (ii) Whether on the facts and in the circumstances of the case and in law, the Tribunal erred in concluding that the allocation of corporate expenses as an estimated rate of 10% made by the company had a scientific basis; where no evidence was produced before either the AO or the appellate authorities as against the AO's allocation being based on the turnover of the units? 3. Regarding question no.(i) : (a) We note that the impugned order of the Tribunal dismissed the Revenue's appeal before it on the above issue following an order of this coordinate benc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal concluded that as the respondent has provided a scientific basis for allocation of expenses and therefore disregarded the allocation of expenses on the basis of turnover. (b) Mr. Pinto, learned Counsel for the Revenue invites our attention to the order of the CIT(A), wherein it has been recorded that the respondent has not furnished the basis of allocation at 10% of corporate expenses between the two units. This resulted in his acceptance of the allocation on the basis of turnover by the Assessing Officer. (c) However, we find that the impugned order of the Tribunal records the fact that the basis of allocation of corporate expenses had been declared by the respondent in Note 4B of its Notes to Accounts. Thus, it is not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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