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2019 (5) TMI 288 - AT - Income TaxDisallowance of deduction u/s 10AA - insurance claim for damage of fixed assets in a fire accident - as per AR insurance claim received by the assessee was for repairing assets damaged in the fire and the assessee has not purchased any new assets. Therefore it cannot be said that it is not related to the business activities of the assessee - HELD THAT - On going through the provisions of section 10AA introduced in to the statute by virtue of Special Economic Zones Act 2005 the amount received towards insurance claim cannot be considered to be a profit derived from export of articles produced or services rendered. That being the case assessee s claim of deduction under section 10AA of the Act in respect of such income cannot be allowed. Decisions relied upon by AR are rendered in different factual context hence not applicable to the facts of the present appeal. Insofar as assessee s claim that the insurance claim cannot be reduced from the block of assets the claim of the assessee in this regard has not been substantiated through proper supporting evidence therefore, unable to accept the contention of the learned Authorised Representative. That being the case the grounds raised are dismissed. Alternative claim that if the insurance claim is treated as income from other course then expenditure relating to such income have to be allowed under section 57 - claim raised in the additional ground needs factual verification by the Assessing Officer. Therefore while admitting the additional ground raised by the assessee restore the issue to the file of the Assessing Officer for considering assessee s claim after verifying the relevant facts on record. These grounds are allowed for statistical purposes.
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