Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (1) TMI 459 - ITAT AGRADeduction u/s 80IB(11) - Gross profit earned on trading of potatoes – Held that:- As decided in assessee’s own case Section 80IB(11) provides for deduction in respect of the cases of Industrial Undertaking deriving profit from business of setting up and operating cold chain facility for agricultural produce. However, in the above provisions, no such deduction is permissible in respect of potato trading. Therefore, no deduction could be allowed on the profits earned on potato trading claimed by the assessee. In favour of revenue Interest on Loan - Loan has been separately taken for own stock of potato, therefore, the interest pertaining to business of trading in potato and business of Cold Storage are required to be separately considered for both activities of business – Held that:- Following the decision in assessee’s own case that If deduction u/s. 80IB(11) is not allowable on potato trading u/s. 80IB, then the interest paid on CC limit for potato trading may be allowed as deduction. We are of the view that the matter requires reconsideration at the level of the A.O. The assessee is able to prove prima facie that bank has granted cash credit limit for trading activities of potatoes, on which the assessee paid interest. If any interest is paid by the assessee in respect of capital borrowed for the purpose of business, the interest paid thereon shall be allowable as deduction. Remand back to AO Deduction u/s 80IB(11) on interest income – Held that:- Where deduction u/s 80IB(11) has not been allowed in respect of profit on trading of potato. Therefore, there is no question of allowing deduction u/s 80IB(11) on interest income. In favour of revenue Disallowance u/s 40(a)(ia) – TDS not deducted on payment made to contractors u/s 194C - payment to each of the contractor was more than Rs.50,000 – Held that:- The payments were made to different labourers as the CIT(A) has rightly held that no evidence is furnished in support of the contention. Following the decision in case of Merilyn Shipping & Transports (2012 (4) TMI 290 - ITAT VISAKHAPATNAM) that because without prejudice to the grounds as mentioned above section 40a(ia) is applicable only in the cases where the amount is payable on the last day of previous year. alternate submission of the assessee that on identical set of facts the issue has been sent back to the file of A.O. Remand back to AO
|