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2016 (1) TMI 364 - AT - Income TaxEligibility for deduction U/s.80IB(4) on freight income not derived from the manufacturing activity - Held that:- The assessee would be eligible for deduction U/s. 80IB(4) of the Act for the income earned from the source of manufacturing activity. The assessee would not be eligible for deduction for any income earned which is attributable to the business of the assessee other than manufacturing activity. Therefore, the Ld. CIT (A) has rightly held that the income earned from freight charges cannot be allowed for deduction U/s.80-IB of the Act and disallowed ₹ 27,66,294/-. However, we are not sure that whether the amount of ₹ 27,66,294/- is the gross receipts of freight charges or the income earned from freight charges. Therefore, we hereby remit back the matter to the file of the Ld. Assessing Officer for making disallowance only to the extent of the net income earned on freight charges while granting the benefit of Section-80-IB(4) of the Act to the assessee and not on the gross freight charges received. It is ordered accordingly. - Decided partly in favour of assessee for statistical purposes
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