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2014 (9) TMI 962 - AT - Income TaxDisallowance of claim of deduction under section 80-IC - "non-timber forest product based industries" - Held that:- The assessee is producing limestone powder in the State of Himachal Pradesh and the lime rocks which is raw material of the assessee is found only in the forests and the Government of Himachal Pradesh has allowed such activity to the assessee. Limestone is therefore a non-timber forest product. Schedule XIV (Part C, Item No. 18) provides deduction to "non-timber forest product based industries", which is limestone, is specifically included in the forest produce and is a non-timber forest products. It is a cardinal principle of interpretation of statutes that the words of the statute must be understood in their natural, ordinary or popular sense and construed according to their grammatical meaning. The words of a statute must, prima facie be given their ordinary meaning. Since in Schedule XIV the item-"non-timber forest product based industries" is mentioned, it would definitely include manufacturing of limestone powder in the State of Himachal Pradesh and as such claim of the assessee under section 80-IC should have been allowed by the authorities below. Accordingly, we set aside the orders of the authorities below and allow the claim of the assessee of deduction under section 80-IC - Decided in favour of assessee. Addition on account of household expenses - Held that:- Assessee has agricultural holding which is explained in the document of the agricultural land to be under cultivation would suggest that some benefit of agricultural income earned by the assessee, can be given to the assessee. Therefore estimate made by the assessee of earning agricultural income at ₹ 1,60,000 the assessee can be given benefit of agricultural income in a sum of ₹ 80,000 only. The assessee thus would be entitled for meeting out household expenses out of agricultural income in a sum of ₹ 80,000 only. Thus the addition of ₹ 2,40,000 made by the authorities below would be reduced to ₹ 1,60,000. - Decided partly in favour of assessee.
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