9911796707
TMI Blog2012 (12) TMI 862X X X X Extracts X X X X X X X X Extracts X X X X ..... essee company has reduced the repair charges on account of insurance claim receivable during the year ? The appellant prays that the order of the Ld. CIT(A) be set aside and the order of the AO be restored." 2. Briefly stated the facts of the case are that the assessee company received insurance claim amounting to Rs. 1,29,09,141/- from M/s Oriental Insurance Company towards repairs carried out in respect of vessel "MT Bhuvani" in the immediately preceding year. The amount of insurance claim received during the year stood set off against the repairs and maintenance of the year under consideration and the assessee company computed deduction under Section 33AC of the Act on the enhanced income to that extent. In order to verify the correctn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enditure of the assessee and making reference to the Tribunal order for assessment year 1997-98 & 2002-03, as has also been reproduced in the impugned order, he stated that "it is clear from the aforesaid two decisions of the ITAT, Mumbai that the insurance claim received and subsidy received have reduced the expenditure of the appellant and the repair expenditure was fully reduced from the eligible amount of profit that later receipt for insurance claim against that expenditure will call for inclusion of eligible amount of profit for deduction". In this view of the matter, he directed the Assessing Authority to allow the deduction under Section 33AC of the Act on the amount received from insurance company for repairs of the ship. 4. Learn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . It was clarified that in the immediately preceding year, the assessee did not claim any deduction under Section 33AC of the Act, in view of the fact that after incurring repair expenses on the ship, it had no such eligible income on which deduction under Section 33AC could have been claimed. The assessee, therefore, did not claim any deduction under Section 33AC of the Act in the immediately preceding year. In these circumstances, the matter need not be remanded back to the Assessing Authority but the decision taken by the learned CIT(A) being reasoned decision, needs to be upheld. 6. We have heard parties with reference to material on record. The assessment order reveals that the Assessing Authority has recorded a finding of fact at int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otherwise, it would be treated as "income from other sources". The Assessing Authority in the impugned year has not accepted the claim that the income from insurance claim is his income from business. Such a finding of fact though acquires finality, yet it does not meet out the direction given in clear terms by the earlier Tribunal to find out as to whether the insurance claim was assessee's profits derived from business of operation of ships or otherwise, it was assessee's "income from other sources". Furthermore, none of the authorities have recorded their satisfaction that the assessee has created adequate reserve and the same does not exceed twice the aggregate of the amount of share capital and assessee having satisfied of conditions ..... X X X X Extracts X X X X X X X X Extracts X X X X
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