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| The Tax Publishers2019 TaxPub(DT) 8128 (Del-Trib) INCOME TAX ACT, 1961
Section 80-IC
Where CIT(A) had given the detailed reason with respect to allocation of cartage expenses and diesel and oil expenses towards the Baddi unit from the Noida unit and further examined the claim of the assessee with respect to the allocation of manufacturing expenses between the 2 units with respect to the transfer of goods, which resulted into reduction of the profits of eligible unit, therefore, appeal of assessee was dismissed.
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Deduction under section 80-IC - Allocation of the cartage expenses and diesel and oil expenses among two units - Computation of -
Assessee filed this appeal before Tribubnal contending that CIT(A) had erred both in law and on facts in making further allocation of Cartage inward and Diesel & Oil expenses towards Baddi unit from Noida holding that these expenses might have been incurred and booked in books of account of Noida but fact remains that same have been incurred for the company as a whole. Thus should be allocated between both Baddi and Noida on the basis of production undertaken in both units.Held: CIT(A) had considered all aspects of computation of eligible income for deduction under section 80-IC. CIT(A) had given the detailed reason with respect to the allocation of cartage expenses and diesel and oil expenses towards the Baddi unit from the Noida unit. He also considered the allocation of depreciation of the corporate office as common cost. He further examined the claim of assessee with respect to the allocation of manufacturing expenses between the 2 units with respect to the transfer of goods, which resulted into reduction of the profits of the eligible unit. Thus, appeal of assessee was dismissed.
REFERRED :
FAVOUR : Against the assessee.
A.Y. :
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