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2021 (9) TMI 125 - AT - Income TaxDisallowance of deduction u/s 80IB(11A) - Nature of business of the assessee - business of processing, preservation and packaging of fruits or vegetables and the assessee received agricultural produce - AO observed that the assessee is involved in running cold storage for rental purposes and that it did not carry on integrated activities of handling, storage and transportation of goods, as per the audit report furnished by the assessee in Form No. 10CCB - HELD THAT:- On perusal of the written submissions and entire documents available before us as well as from the financial statements, we do not find any entry towards transportation expenses debited by the assessee in the P&L Account. If the assessee has paid to third parties towards transportation expenses, it must have been reflected in its books of account, but, there is no such expenses debited by the assessee in P&L Account. If the assessee has undertaken transportation of food grains, there must be vehicle expenses debited in the account, but, no such expenses were found from the financial expenses. The submission of the assessee with regard to movement of goods from one place to other places is a normal activity within the cold storage area for keeping seeds at an appropriate place inside the cold storage - no substance in the submission of the ld. AR that expenditure towards transportation has been incurred. In the financial statements there is no expenditure is shown under the head “petrol, diesel, oil and lubrications, maintenance, or vehicle hire charges, etc., which shows that the assessee has not incurred an expenditure towards petrol, diesel etc. for transportation of food grains. On perusal of tax audit report, the nature of the business activity of the assessee has been shown as cold storage services and in financial statements also as well as as per the orders of lower authorities, Form 10CCB also does not reflect that the assessee is carrying or engaged in the business of handling, storage and transportation of food grains and also not taking of any business of processing and packaging of goods or vegetables vide sl. Nos. 24(b) and 24(c) respectively. No doubt, the assessee is operating cold storage, but, other ingredients for eligibility of deduction is not satisfied. The assessee failed to establish that it had incurred expenses towards hamali charges and transportation of food grains. The case law relied upon by the assessee are distinguishable on facts to the case of the assessee. Res-judicata does not apply in this case. AR also failed to produce earlier AYs orders passed u/s 143(3) of the Act to show that any deduction was granted u/s 80IB(11A) - We do not find any infirmity in the order of the CIT(A) wherein he held that the assessee is not entitled for deduction u/s 80IB (11A) - Decided against assessee.
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