TMI Blog2015 (11) TMI 1071X X X X Extracts X X X X X X X X Extracts X X X X ..... “brokerage”, “commission”, “rent”, “charges”. The words “similar nature” used before the words “any other receipt” refers to and alludes to the principle of “edjusdem generis” and in fact leaves no ambiguity as to legislative intent that only such receipts would fall within the meaning of sub-clause (1) of the explanation as would partake the nature of the words preceding the expression “receipts of a similar nature”. A claim for insurance arises on account of a special loss to an assessee and, therefore, does not require any degree of legal acumen or scholarship to infer that such receipt cannot be included within subclause (1) of the aforementioned explanation. - Decided against the revenue Deduction u/s 80HHC - Held that:- The sales ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AJAY KUMAR MITTAL, J. 1. Delay in refiling the appeal is condoned. 2. This appeal has been filed by the revenue under Section 260A of the Income Tax Act, 1961 (in short the Act ) against the order dated 31.8.2006 (Annexure A-III) passed by the Income Tax Appellate Tribunal, Chandigarh Bench 'B', Chandigarh (hereinafter referred to as the Tribunal ) in ITA No. 740/CHD/2004 for the assessment year 2001- 02, claiming the following substantial questions of law:- i) Whether on the facts and law, the Hon'ble Income Tax Appellate Tribunal was justified in holding that insurance claim was not in the nature of 'other receipts' and 90% of such receipts could not be reduced from 'profit of business' unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Feeling aggrieved, the assessee filed an appeal before the Commissioner of Income Tax (Appeals) [for brevity the CIT(A) ]. The CIT(A) vide order dated 30.3.2004 (Annexure A-II) partly allowed the appeal and directed the Assessing Officer not to reduce 90% of the receipts from the 'profits of the business' under clause (baa) of Explanation to Section 80HHC(4C) of the Act. Further, the Assessing Officer was directed not to add the sales tax and CST receipts in the total turnover for computation of deduction under Section 80HHC of the Act and also to allow deduction under Section 80IB of the Act by treating duty draw back as part of profits derived from industrial undertaking. Against the order, Annexure A-II, the revenue filed an a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es or any other receipt of a similar nature included in such profits; and (2) the profits of any branch, office, warehouse or any other establishment of the assessee situate outside India ; The words any other receipt of a similar nature included in such profits used in the explanation have to be read edjusdem generis to the preceding words, i.e., brokerage , commission , rent , charges . The words similar nature used before the words any other receipt refers to and alludes to the principle of edjusdem generis and in fact leaves no ambiguity as to legislative intent that only such receipts would fall within the meaning of sub-clause (1) of the explanation as would partake the nature of the words preceding the expression ..... X X X X Extracts X X X X X X X X Extracts X X X X
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