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2012 (12) TMI 862 - AT - Income TaxDeduction u/s 33AC on insurance claim - the assessee company has reduced the repair charges on account of insurance claim receivable during the year - Held that:- The assessment order reveals that the Assessing Authority has recorded a finding of fact that the assessee did not discharge the onus that lay upon him for producing evidence to prove that such insurance receipt is his business receipt. Also that such insurance receipt is not assessee's business income and, thus, the same does not qualify for deduction under Section 33AC. This finding of fact is not shown to have been challenged by the assessee in appeal before the CIT(A) as he raised two different grounds in appeal before him. Thus CIT(A) is found to have misconstrued the order of the earlier Tribunal None of the authorities have recorded their satisfaction that the assessee has created adequate reserve and the same does not exceed twice the aggregate of the amount of share capital and assessee having satisfied of conditions as laid down under Section 33AC of the Act, is eligible for deduction in that section. In this view of the matter the matter remitted back to AO for recording a finding of fact as to whether the insurance claim received by the assessee is his profit derived from the business of operation of ships and the same is assessable under the head profits or gains of business or profession or otherwise, it was his other income assessable under the head "income from other sources" - appeal by the revenue stands allowed for statistical purposes.
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