TMI Blog2012 (12) TMI 24X X X X Extracts X X X X X X X X Extracts X X X X ..... r regarding fire insurance claim and the cost of the raw cotton, therefore, matter is so set aside to the file of the AO. AO is directed to verify the factual figure of loss vis-a-vis the amount of compensation received from the insurance company against loss of stock. If amount of compensation received is more than the amount of actual loss, the excess amount is not eligible for deduction u/s 8IB - Decided in favor of assessee for statistical purposes - ITA No.213/Ind/2012 - - - Dated:- 19-7-2012 - SHRI JOGINDER SINGH AND SHRI R.C. SHARMA, JJ. Appellant by Shri P.D. Nagar Respondent by Shri Keshav Saxena ORDER PER JOGINDER SINGH, judicial member The assessee is aggrieved by the impugned order dated 30th Mar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded that the decisions from Hon ble Apex Court in the case of Pandian Chemicals vs. CIT; 262 ITR 278 and Sterling Foods; 237 ITR 579 (SC) support the case of the Revenue. 3. We have considered the rival submissions and perused the material available on record. The facts, in brief, are that the assessee is a partnership firm, was in the business of manufacturing of ginning and pressing of cotton, declared income of Rs.96,12,610/- after claiming deduction of Rs.23,55,102/- as eligible deduction u/s 80IB of the Act, being equal to 25% of the profits derived therefrom. The assessment u/s 143(3) was completed on the total income of Rs.99,22,610/-. 3.1 The learned CIT invoked revisional jurisdiction u/s 263 vide order dated 30th March, 2012 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... insurance claim which as per the learned CIT was not derived from industrial activity. However, we are of the view that the amount so received by the assessee company from the insurance company is in the nature of compensation for loss of stock and such compensation cannot be treated as income of the assessee so as to decline the claim of deduction u/s 80IB of the Act and should be taken into account in determining the profit and gains of the assessee company. On questioning from the Bench, it was explained by the ld. Counsel for the assessee that in comparison to cost of raw cotton, the insurance claim was less, therefore, there is still loss to the assessee. In view of these facts, the ratio laid down by the Hon ble High Court of Delhi in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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