Section 80IC deduction cannot be restricted merely for higher profit margin

DCIT Vs Goodcare Pharma Pvt. Limited. (ITAT Kolkata)

Deduction claimed by the assessee under section 80IC in respect of profit derived from the eligible Dehradun Unit was restricted by the Assessing Officer on the ground that the profit of the said Unit as declared by the assessee was allegedly higher. It was pointed out that the profitability of Dehradun Unit was always higher and it was accepted by the Assessing Officer in the earlier years. Entire sales of Dehradun Unit was made by the assessee-company to its associate concern M/

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