TMI Blog2012 (12) TMI 666X X X X Extracts X X X X X X X X Extracts X X X X ..... the Exim policy & CETA 1985 classifies bagasse as a waste of sugar industry under Chapter 23 Heading 23.20 thereof & Chapter 23 heading 23.01 respectively. Whether collection would mean collecting free of charge and not by purchasing the same. - held that:- The word “collecting” means to gather; to fetch. It is a neutral word and does not mean collection for consideration or collection without consideration. Thus it is an undisputed position that the assessee has collected bagasse from sugar factories after having made payment for the same. Therefore, the aforesaid requirement of collecting as provided under Section 80JJA is satisfied. It is a undisputed finding of fact that the collected bagasse has been used by the respondent-assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... business of manufacturing fuel briquettes from bagasse. For the assessment years 2003-04 and 2004-05 the respondent filed her returns of income declaring total income of Rs.2.65lacs and Rs.2.34lacs respectively. The aforesaid income for the assessment years 2003-04 and 2004-05 was arrived at inter alia after claiming deduction of Rs.27.62lacs and Rs.28.18lacs respectively under Section 80JJA of the Act. b) By an order dated 28/2/2006 for assessment year 2003-04 the Assessing officer disallowed a claim for deduction of Rs.27.62lacs under Section 88JJA of the Act. Similarly by an order dated 29/9/2006 for assessment years 2004-05 the deduction of Rs.28.18lacs under Section 80JJA of the Act was disallowed. This deduction under Section 8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... because it is purchased for a price it does not cease to be a waste. The Tribunal held that the respondent assessee satisfied the conditions for availing of the benefit of Section 80JJA of the Act namely collecting and processing bio-degradable waste in respect of profits and gains derived there from. 4) Section 80 JJA of the Act reads as under: 80JJA. Where the gross total income of an assessee includes any profits and gains derived from the business of collecting and processing or treating of bio-degradable waste for generating power (or producing bio fertilizers, biopresticides or other biological agents or fur producing bio-gas or making pellets or briquettes for fuel or organic manure, there shall be allowed, in computing the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n support of his contention that bagasse is a waste reliance was placed upon a letter dated 4/2/2006 of the Sugar Commissioner, Maharashtra State certifying that bagasse is a residual waste generated in sugar industry. Similarly reliance was also placed upon Chapter 23 Heading No.23.01 of the Central Excise Tariff Act, 1985 and Chapter 23 of ITC (HS) classification wherein bagasse has been classified as waste of sugar manufacture; b) The Circular No.772 dated 23/12/1998 being relied upon by the appellant does not in fact restrict operation of Section 80JJA of the Act only to local bodies and excludes individuals from its benefit; and c) Section 80 JJA of the Act merely requires that bio degradable waste should be collected and p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3.01 of the Central Excise Tariff Act, 1985. We do not agree with the submissions of the appellant's Counsel that collection would mean collecting free of charge and not by purchasing the same. The word collecting means to gather; to fetch. It is a neutral word and does not mean collection for consideration or collection without consideration. It is an admitted/undisputed position that the respondent assessee has collected bagasse from sugar factories after having made payment for the same. Therefore, the aforesaid requirement of collecting as provided under Section 80JJA of the Act is satisfied. It is a undisputed finding of fact that the collected bagasse has been used by the respondent-assessee to make briquettes for fuel as that indee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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