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2021 (6) TMI 501 - AT - Income TaxDeduction u/s 80IB(11A) - income is derived from warehouse business operation and it is deriving profit from integrated business of handling storage and transportation of food grains - HELD THAT:- Assessee has constructed various godowns and some of them were also taken on rent. Assessee has more than 250 rented warehouses and most of them were NCDEX accredited which is strict standard for use of modern technology for storage of food grains and prevention of post harvest loss to the agriculture commodities. From the plain reading of the provision for eligibility for claim of deduction nowhere it is provided that assessee has to own the warehouse or if the warehouses are taken on rent for providing integrated handling storage and transportation services, it would disentitle the assessee for claiming any deduction u/s 80IB (11A). The contribution of the assessee towards infrastructure development cannot be undermined, because the construction of the warehouses will be dependent on the requirement of business of handling, storage and transportation of the food grains. There is no fetter in the law; whether the warehouses are constructed by the assessee itself, or warehouses are taken on rent from others. What is relevant is that, profit and gains have to be derived from eligible business from the integrated business of handling, transportation of food grains. Thus, the reasoning and the grounds given by the Ld. AO to reject the claim of deduction cannot be sustained. Whether the undertaking of the assessee had commenced its operation on or after 1st April, 2001 or not? - It has already been clarified by the Ld. Counsel by placing the audited balance sheet as on 31.03.2007 to substantiate that Assessee Company has commenced its operation after 31st March 2007 only which is much after the year 2001. The balance sheet for 31st March 2008 and 2009 clearly shows the business of storage, handling and transportation has started from assessment year post 31st March 2008. Thus, the construction of storage godowns and on rent had started much after the Asstt. Year 2007-08. On these facts it cannot be held that assessee had not commenced its business of operation after the year 2001 which is one of the conditions prescribed u/s 80IB (11A). Accordingly, we hold that assessee fulfils all the mandatory conditions prescribed u/s 80IB (11A), as all its income is derived from warehouse business operation and it is deriving profit from integrated business of handling storage and transportation of food grains. The assessee is entitled for claim of deduction u/s. 80IB (11A). Accordingly, the order of the Ld. CIT (A) is confirmed and the Revenue ‘s appeal is dismissed.
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