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2016 (5) TMI 1487 - AT - Income TaxDisallowance of deduction u/s. 80IB(11A) - Held that:- Remit the file back to the Assessing Officer to consider the claim of the assessee. The assessee would be eligible to claim deduction u/s. 80IB(11A) on the share of income from the business of warehousing, transportation and handling of foodgrains of the units (warehouses) which have started operating on or after 01-04-2001. Disallowance of deduction u/s. 80IA(4) - assessee has set up Inland Container Depot (ICD) and Container Freight Station (CFS) for handling bonded warehousing facilities on leasehold land of SIDCO - Held that:- The Hon'ble Madras High Court in the case of Commissioner of Income Tax Vs. A.L. Logistics (P.) Ltd. [2015 (1) TMI 401 - MADRAS HIGH COURT] has held that CFS is part of Inland port and therefore, is an infrastructure facility as defined in Explanation to section 80IA(4)(i) of the Act. In view of the various decisions discussed above and the facts of the instant case we accept ground no. 2 raised in the appeal of the assessee for assessment year 2009-10. Thus, we hold that the assessee is eligible to claim deduction u/s. 80IA(4) in respect of the ICD/CFS set up by the assessee. Addition in respect of payment made by the assessee to the Maharashtra State Warehousing Corporation Karmachari Welfare Fund - Addition u/s 40A(a) - Held that:- In Vinay Narayan Vajpayee [1980 (1) TMI 204 - SUPREME COURT] held that the contribution made by the assessee towards Karamchari Welfare Fund falls within the expression ‘as required by or under any other law” for the purpose of section 40A(a) of the Act. We do not find any error in the findings of Commissioner of Income Tax (Appeals) on this issue. Neither, the ld. DR has been able to controvert the said findings nor the ld. DR has placed on record any judgment contrary to the view taken by the Co-ordinate Bench of the Tribunal. Hence, the ground raised in the appeal of Department are dismissed being devoid of any merit. Addition on account of “understatement of warehousing charges” - addition on the basis of remarks made in the Audit report - Held that:- A perusal of the impugned findings by Commissioner of Income Tax (Appeals) shows that the assessee has furnished explanation in respect of alleged understatement of warehousing charges. The assessee has purportedly offered the amount of insurance claim for tax in the year of receipt. In support of his submissions the assessee has furnished computation statements for assessment years 2007-08, 2008-09 and 2009-10. The Commissioner of Income Tax (Appeals) has deleted the addition after considering the same. We do not see any infirmity in the action of Commissioner of Income Tax (Appeals) in deleting the addition. Once the assessee has offered the amount to tax in the year of receipt of claim, the same amount cannot be taxed twice. Addition of fixed deposit closing balance differences - whether or not the assessee has offered the differences as its income for the respective assessment years - Held that:- A perusal of the impugned order shows that the Commissioner of Income Tax (Appeals) has rejected the claim of the assessee and sustained the addition made by the Assessing Officer. Since, the claim of the assessee in respect of aforesaid ground has been rejected by the Commissioner of Income Tax (Appeals) there should be no grouse for the Revenue against the said findings of the Commissioner of Income Tax (Appeals). Addition of understatement of income resulting from overstatement of “other liability” under the heads fire at Kalamboli warehouse and fire at Kopargaon warehouse - Held that:- DR has not been able to show from records that the findings of Commissioner of Income Tax (Appeals) on this issue are erroneous. The assessee has received insurance claim on account of loss of capital asset, therefore, there is no infirmity in treating the claim amount as capital receipt. The ld. DR has not been able to controvert the finding of Commissioner of Income Tax (Appeals) on this issue. The findings of Commissioner of Income Tax (Appeals) are upheld
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