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TMI Blog2018 (12) TMI 1759X X X X Extracts X X X X X X X X Extracts X X X X ..... s erred in law and on the facts while upholding the act ion of the assessing officer for calculating the allocable expenses for earning dividend income by apportioning the expenses in the ratio of dividend income to profits of the undertaking instead of dividend income to total receipts of the appellant. 3. That the Ld. C1T (A) has erred in law and on the facts while upholding the act ion of the Assessing officer for excluding following receipts from the eligible profits for deduct ion u/s 80-IC of Income Tax Act. Particulars Amount (Rs.) Sale of DEPB 224462 Profits on sale of raw material 4330 4. That the Ld. C1T (A) has erred in law and on the facts while directing to exclude Interest received, provision no longer required writ ten back, sundry balances writ ten back and Misc. Receipts from the eligible profits for deduct ion u/s 80-IC of Income Tax Act. 5. That the Ld. CIT (A) has erred in law and on the facts while not directing the Assessing officer to observe consistency in approach in Income tax Proceedings against the appellant while al lowing deduction u/s 80-IC of the Income Tax Act. 6. That the appellant craves leave to add / amend / alter any grounds ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng upon the decision of the Hon'ble Bombay High Court in the case of 'CIT Vs. Godrej Agrovet Ltd.,' (supra) taking into account the consideration of facts and circumstances of that case has held that the expenditure equal to 4% of the exempt income earned by the assessee would constitute reasonable disallowance u/s 14A and directed accordingly. Applying the above proposition and considering the facts and circumstances of the case, in our view the interest of justice will be met if the disallowance made u/s 14A of the Act is restricted to 5% of the total tax exempt earned income. We order accordingly. 5. Ground No.3: This has not been pressed and the same is dismissed as not pressed. 6. Ground No.4 : Vide ground No.4, the assessee has agitated the act ion of the lower authorities in excluding certain income like interest received, provision writ ten back, sundry balances written back and Misc. receipts f rom the eligible prof its for deduction u/s 80IC of the Act. As per the lower authorities, since the aforesaid receipts did not constitute income f rom the manufacturing process, hence, the same was not allowable to be includible for the purpose for eligible income for ded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Revenue in ITA No.762/Chd/2009. The Revenue has raised the following grounds of appeal:- 1. On the facts and in the circumstances of the case, the Learned C.I.T. (Appeal) in Appeal No. 353/P/08-09 dated 01.05.2009 has erred in deleting the addition of Rs. 56,770/- on account of shortage of finished goods.. 2. The Learned C.I.T. (Appeal) has erred in deleting the addition of Rs. 1,41,346/- on account of free samples with regard to closing stock details which the assessee could not clarify. 3. The Learned C.I. T. (Appeal) has erred in deleting the addition of Rs. 48,014/- made by the A. O. on account of excess depreciations claimed on printer. 4. The Learned CIT(A) has erred in al lowing deduction u/s 80IC of the Income tax Act, to the assessee especially when the process undertaken by the assessee is not manufacturing as it does not entail bringing into existence a new and distinct product and nor was the change irreversible. 5. The Learned CIT(A) has erred in directing to work out profit on sale of raw material for disallowing the same from claim of deduction u/s 80IC when the assessee had itself shown the same as income. 6. The Learned CIT(A) has erred in h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i.e. i.e. in the assessment year 2019-2020. We do not see any merit at this stage to interfere as it will not serve any purpose as the same will ultimately have 'nil' tax effect. Hence, without deliberating upon the merits of the issue, we think that at this stage, the findings of the CIT(A) needs not to be disturbed. This ground of the Revenue's appeal is therefore, stands dismissed. 17. Ground No.4: Vide ground No.4 the Revenue has agitated the act ion of the CIT(A) that as to whether the activity carried on by the assessee constitute the 'manufacturing process'. The issue is admittedly covered by the decision of the Tribunal in ITA No. 569/Chd/2012 vide order dated 13.7.2017, wherein, the Tribunal has discussed this issue vide paras 13 to 15 of the said order. Since the issue has already been decided in favour of the assessee in the own case of the assessee in earlier assessment year and no contrary decision has been cited before us, this ground of the Revenue has no merit and the same is accordingly dismissed. 18. Ground No.5: Vide ground No.5, the Revenue has agitated the action of the CIT(A) in directing the Assessing officer to work out the profit on the sale of raw mate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the expenditure. 23. We have considered the rival submissions and also have gone through the order of the CIT(A) and we do not find any infirmity in the same. In view of this, there is no merit in the ground raised by the Revenue and the same is accordingly dismissed. In the result, the appeal of the Revenue is partly allowed. ITA No. 539/Chd/2011: 24. The assessee in this appeal has taken following grounds of appeal:- 1. That the Ld. C1T(A) has erred in law and on facts while passing the impugned appellate order on the following issues. 2. That the Ld. CIT(A) erred in law and on facts while upholding the impugned order of the Ld.AO on regarding exclusion of the following receipts from eligible profits for deduct ion u/s 80IC of The Income Tax Act. 1961: Particulars Amount(Rs.) Interest from customers 10,72,909 Insurance Claims 5,82,944 Raw material sale 27,84,591 DEPB 14,278 Processing Charges 53,299,902 3. That the appellant craves leave to add/alter/amend any ground of appeal on or before the due date of hearing of appeal. Hence the appeal may kindly be allowed, necessary reliefs as per aforesaid grounds may kindly be granted and/or other ..... X X X X Extracts X X X X X X X X Extracts X X X X
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