Commissioner of Income Tax vs NIT Cris Ltd.

This appeal is directed against the order dated 17.8.2007 passed by the Income Tax Appellate Tribunal in ITA 519/Del/2005 relating to assessment year 2001-02. The issue that arose before the Tribunal was with regard to the deduction u/s 80-IB claimed by the assessee. The question that was there before the Tribunal was with regard to allocation of expenses between two separate units of the assessee which were styled as the Parwanoo and non-Parwanoo units. The Commissioner of Income Tax (Appeals) as well as the Income Tax Appellate Tribunal held in favour of the assessee on facts. The Tribunal f concluded that the Assessing Officer had not brought on record any instance of any expenditure being charged in another unit. The Tribunal noted that the assessee had maintained separate books of accounts and the expenditure exclusively incurred for the Parwanoo and non-Parwanoo businesses were identifiable and had been directly debited to their respective books. The common expenditure of the businesses were apportioned in the ratio of turnover and that the CIT (Appeals) had accepted this after examining the issue in detail. The Tribunal also noted that the department had not pointed out any item which had been incurred by the Parwanoo business and charged to the non-Parwanoo business so as to increase the profit of the Parwanoo business which resulted in higher deduction u/s 80IB of the said Act. The findings returned by the Commissioner of Income Tax (Appeals) as well as the Tribunal are pure findings of fact. No substantial question of law arises for our consideration. The appeal is dismissed.