GLOBUS INFOCOM LTD Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) COUNSEL for the respondent -Revenue has not been able to ascertain the correctness of the documents filed along with the present appeal. We are not inclined to grant any further time to the counsel for the respondent - Revenue as notice in the appeal was issued on 28th October, 2013 and sufficient time has been granted. Further, a very limited issue arises for consideration.

(2.) BY order dated 28th July, 2014, the following substantial question of law was framed: -

(3.) COMMISSIONER of Income Tax issued a notice under Section 263 of the Act, dated 4th February, 2011, on two grounds. Firstly, commission of Rs.69,53,949/ - had been paid to the two Managing Directors, but should have been disallowed under Section 36(1)(ii) of the Act. Secondly, the assessee had booked majority of the expenses against the unit carrying out trading operations and thereby had inflated profits of the manufacturing unit exempt under Section 80 -IC. Expenses booked for the eligible unit under section 80 -IC were only Rs.12,31,78,274/ -, as against expenses of Rs.37,26,60,316/ - booked against trading activities.