COMMISSIONER OF INCOME TAX Vs. CAVINKARE PVT. LTD.

JUDGEMENT

(1.) FOLLOWING are the substantial questions of law raised by the Revenue in these Tax Case Appeals:

(2.) WHETHER on the facts and circumstances of the case, the tribunal was right in holding that the indirect expenditure related to exports should only be calculated on the basis of the formula u/s. 80HHC if regular books of accounts are not maintained?

(3.) IN the appeal relevant to the assessment year 2002 -2003, the First Appellate Authority pointed out that indirect expenses attributable to export goods were not identifiable. Admittedly, there was no documentary evidence filed to prove that the export of goods was effected only through head office for which any exclusive demarcation was done from all other branches of the assessee and there was no indirect expenses incurred at any other branch office that could be directly or indirectly relatable to the export of trading goods. In the circumstances, the Commissioner accepted that the formula as per 80HHC(3)(b) had to be adopted; that the total indirect expenses were required to be apportioned in the ratio of export turnover of the trading goods to the total turnover of the assessee. As far as the assessment year 2003 2004 is concerned, it followed the earlier order passed for assessment year 2002 -2003. As against this, the Revenue went on appeal. The assessee also went on appeal as against certain other claims.