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2014 (5) TMI 730 - AT - Income TaxDenial of deduction u/s 80IB(11A) of the Act Business of taking godowns on lease and letting them - Held that:- There was no merit in the reasons of the lower authorities for making the disallowance - the assessee-corporation owns premises accommodating godowns at different places all over the State - each unit is an undertaking because food-grains are stored and handled and transported thereto and therefrom - there is no restriction in section 80-IB that an existing business unit cannot set up new undertakings to carry on the integrated business of handling, storage and transportation of food grains - The godowns where this business is to be carried on need not be owned by the assessee - When the assessee-corporation has set up these godowns in as many as in 73 towns and at different places in those towns, it is entitled for relief u/s 80IB(11A) of the Act in respect of each such new undertaking set up by it. The assessee had collected rentals for storing food grains and had engaged outsiders to transport the food grains - the assessee had been carrying on similar business would not disentitle the assessee from claiming relief u/s 80IB(11A) - deduction under Chap VIA, in respect of new undertakings set up by the assessee by way of expansion of the existing undertakings Relying upon as held by the Apex Court in the cases of Textile Machinery Corporation Ltd v CIT [1977 (1) TMI 3 - SUPREME Court] thus, the assessee is entitled to deduction u/s 80IB(11A), in respect of income derived from the new undertakings, warehouses, set up and operated from 1.4.2001 for storage, handling and transportation of food grains the order of the CIT(A) is set aside and the matter is remitted back to the AO for verifying the claim of the assessee - Decided in favour of Assessee. Disallowance of deduction u/s 37 of the Act - Contribution made to IAS Officers Association Building Held that:- The assessee itself has added the amount of Rs.2 lakhs in the computation of income, and a separate addition hence is not called for - It is to verify this contention of the assessee and to delete the addition made by the Assessing Officer, if the same is found to be correct that the CIT(A) set aside the matter to the file of the Assessing Officer with specific directions in that behalf there was no infirmity in the action of the CIT(A) in this behalf Decided against Assessee.
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