CIT Vs. KANORIA CHEMICALS & INDUSTRIES LTD.

JUDGEMENT

(1.) THE assessing officer reduced the profits shown by the assessee at a sum of Rs. 36,95,49,232 to a sum of Rs. 6,82,21,261 for the purpose of computing the deduction allowable under Section 80IA of the Income Tax Act on the basis of the following reasoning:

(2.) THE assessing officer evidently ignored the explanation offered by the assessee which he has recorded in the assessment order which reads inter alia as follows:

(3.) THE Commissioner (Appeal) did not interfere in an appeal preferred by the assessee. The assessee approached the Tribunal. The Tribunal reversed the finding of the Assessing Officer for the following amongst other reasons: