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TMI Blog2022 (8) TMI 198X X X X Extracts X X X X X X X X Extracts X X X X ..... t the delay in filing the cross objection was caused due to Covid pandemic situation prevailing in the country at the material time. We are satisfied with the reason so stated. The Hon'ble Supreme Court in Cognizance for Extension of Limitation, In re 438 ITR 296 (SC) read with judgment in Cognizance for Extension of Limitation, In re 432 ITR 206 (SC) dated 08-03-2021 and 421 ITR 314 has taken a suo motu cognizance of the situation arising out of the challenges faced by the country on account of COVID- 19 Virus and resultant difficulties that could be faced by the litigants across the country and accordingly extended the time limit for filing of the appeals. We, therefore, condone the delay in filing the instant cross objection and admit th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... venue accounts for 77% and revenue from Trading is 23%. Per contra, Trading revenue of GIL is 56% and Manufacturing revenue is 44%. In view of the fact that the Trading revenue in the case of GIL is more than double of the assessee and only the consolidated figures are meant to be compared, we hold that Gorani Industries Limited cannot be considered as comparable. The obvious reason is that the profit margin widely varies in a Manufacturing model of activity vis-à-vis the Trading model. In view of such an extensive fluctuation in the Trading and Manufacturing revenue streams of the two companies, we hold that GIL cannot be considered as comparable. The impugned order is overturned to this extent and this company is directed to be exc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the shareholders of GAL and as a consequence, the paid up share capital of the Company has been increased by Rs.579.39 lakhs." 9. It can be seen from the above that GAL merged with BGAL and the transactions of assets and liabilities etc. of GIL have been incorporated in the books of BGAL as on 31-03-2012, which is relevant to the assessment year under consideration. In view of the fact that the figures of this company for the year are influenced by the merger taking place, we hold that the extraordinary financial event makes it incomparable. We, therefore, order to exclude this company from the list of comparables. 10. The only other ground is about the proportionate adjustment. In this regard we find that the issue of restricting th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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