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2009 (8) TMI 29 - DELHI HIGH COURT
Benefit of Section 80IA - on account of loss of goods which were destroyed by fire, the assessee company was given an insurance claim - The AO was of the view that the amount received from the Insurance Company is not “derived from” the manufacturing activity of the assessee company and consequently the assessee was not entitled to the benefit of Section 80IA – CIT(A) and ITAT allowed the claim u/s 80IA and deleted the addition made by AO – ITAT held that Moreover, the said receipts on account of insurance claim, in our opinion, are in the nature of reimbursement of loss actually incurred by the assessee as a result of goods damaged by fire and there being no element of profit involved therein, the same cannot be treated as any income separately earned by the assessee so as to exclude them for the purpose of computing deduction u/s 80IA – Held that - we accept the contention of the assessee and reject the contention of the Revenue – revenue appeal dismissed.