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2015 (11) TMI 108 - AT - Income TaxComputation of allowable deduction u/s.80-IB - CIT (A) directing the AO to include the Cylinder Transport charge for the purpose of computation of allowable deduction - Held that:- On examining the facts of the case it is revealed that the Central Excise Department has included the cylinder transport charges as a part of the sale consideration for the sale of liquid carbon dioxide; accordingly, they have levied central excise duty on the same. When one wing of the Central Government considers the transport charges on transport of CO2 Gas as a part of sale consideration and levies excise duty on the same, we wonder as to why the other wing of the Central Government refuses to treat the same as sale consideration for the purpose of granting benefit U/s.80-IB of the Act when the Act does not specifically prohibit from granting such benefits. The only grouse of the Revenue that transport charges on sale of liquid carbon dioxide gad does not have direct nexus with the assessee's industrial undertaking and therefore, the assessee is not entitled to the benefit of 80-IB of the Act are not acceptable. When the expenditure incurred towards transport charges for procuring raw materials is treated to have direct nexus with the assessee's industrial undertaking and allowed as deduction, the delivery charges of the finished product i.e., liquid carbon dioxide should also have to be treated in the similar manner as having direct nexus with the assessee's industrial undertaking and an integral part of the Turnover when the Act does not prevent from such inference - Decided against revenue.
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