TMI Blog2015 (11) TMI 108X X X X Extracts X X X X X X X X Extracts X X X X ..... ing of the Central Government refuses to treat the same as sale consideration for the purpose of granting benefit U/s.80-IB of the Act when the Act does not specifically prohibit from granting such benefits. The only grouse of the Revenue that transport charges on sale of liquid carbon dioxide gad does not have direct nexus with the assessee's industrial undertaking and therefore, the assessee is not entitled to the benefit of 80-IB of the Act are not acceptable. When the expenditure incurred towards transport charges for procuring raw materials is treated to have direct nexus with the assessee's industrial undertaking and allowed as deduction, the delivery charges of the finished product i.e., liquid carbon dioxide should also have to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ransport charges of cylinders from the revenue. 4. It was opined by the Ld. Assessing Officer that the transport charges received by the assessee did not amount to income derived from the manufacturing activity of CO2 Gas and dryers by the assessee. The Ld. Assessing Officer further opined that only the profits and gains derived from the business of manufacturing activity of producing any article or thing qualifies for deduction U/s.80-IB of the Act. Since ₹ 1,94,63,923/- was received by the assessee towards cylinder transport charges, the Ld. Assessing Officer excluded the same for computing the deduction U/s.80-IB of the Act. While doing so, the Ld. Assessing Officer rejected the argument of the assessee that the cylinder transpo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o include the cylinder transport charges for the purpose of computation of deduction U/s.80-IB of the Act by observing as follows:- 5.2.1 The facts of the present case with respect to claim of transport charges are identical to the facts of the case prevailing in the A.Y 2005-06 decided by CIT(A)-V in the order dated 04.04.2011. The AR of the appellant also relied upon the ratio of the decision of the Madras High Court reported in 110 ITR 453 in the case of CIT V. L.G.Ramamurthy Others in support of its claim that consistent view should be taken in an identical circumstances. In view of the above facts and legal position, I direct the Assessing Officer to include the cylinder service charges of ₹ 1,88,44,632/- for the purpose o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the order dated 04.04.2011. Moreover, on examining the facts of the case it is revealed that the Central Excise Department has included the cylinder transport charges as a part of the sale consideration for the sale of liquid carbon dioxide; accordingly, they have levied central excise duty on the same. When one wing of the Central Government considers the transport charges on transport of CO2 Gas as a part of sale consideration and levies excise duty on the same, we wonder as to why the other wing of the Central Government refuses to treat the same as sale consideration for the purpose of granting benefit U/s.80-IB of the Act when the Act does not specifically prohibit from granting such benefits. The only grouse of the Revenue is that t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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