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TMI Blog2009 (1) TMI 140X X X X Extracts X X X X X X X X Extracts X X X X ..... as head office should be allocated for the project work for determining the profit – CIT (A) deleted the disallowance made out of HO expenses and addition made of 10 % towards estimated profit on ground that it was another form of depreciation which has already been considered once – ITAT rightly upheld CIT’s order - 354 of 2004 - - - Dated:- 27-1-2009 - K. RAVIRAJA PANDIAN and P. P. S. JANARTH ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... flats, contract and real estates. During the year, the assessee-company was being converted into a public limited company from a company in which public are not substantially interested. The Assessing Officer was of the opinion that the head office was controlling the project and, therefore, some expenditure of the Madras head office should be allocated for the project work for determining the pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erred an appeal to the Tribunal. The Tribunal by the impugned order held that "in the hands of the company profit is the ultimate of all its activities. Even if the head office expenses are to be allocated, which is only called for from the point of view of project profit, it would have no effect in so far as the determination of income is concerned. If the expenses are to be allocated to the proj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The issue involved in the present case has been formulated as a question of law in respect the assessment years 1987-88 and 1988-89 and was agitated before this court in the above judgment reported in CIT v. S. I. Property Development Ltd. [2002] 256 ITR 601, wherein this court, while dismissing the appeals, held that "since the method adopted by the assessee had been followed by it consist ..... X X X X Extracts X X X X X X X X Extracts X X X X
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