Allocation of expenses for 80IC deduction must follow past precedent: ITAT.

The Income Tax Appellate Tribunal (ITAT) ruled that the allocation of expenses for deductions under section 80IC should adhere to past precedents. The Assessing Officer (AO) had reallocated management fees and director remuneration based on gross profit, but ITAT directed the AO to follow the previously accepted allocation method. Additionally, ITAT instructed the AO to allow a 30% deduction on the profits of the eligible unit without offsetting losses from non-eligible units, despite the provisions of section 80-IA(7) that prohibit such set-offs. .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X