TMI Blog2016 (1) TMI 364X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of ₹ 27,66,294/- is the gross receipts of freight charges or the income earned from freight charges. Therefore, we hereby remit back the matter to the file of the Ld. Assessing Officer for making disallowance only to the extent of the net income earned on freight charges while granting the benefit of Section-80-IB(4) of the Act to the assessee and not on the gross freight charges received. It is ordered accordingly. - Decided partly in favour of assessee for statistical purposes - ITA No. 57/Mds/2014 - - - Dated:- 20-11-2015 - N. R. S. Ganesan, JM And A. Mohan Alankamony, AM For the Appellant : Ms. Jharna B. Harilal, F.C.A For the Respondent : Dr. B Nichal, JCIT, D.R ORDER Per A. Mohan Alankamony, Accountant M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the delivery of manufactured items at the premises of the clients of the assessee; therefore, it is an integral revenue ingredient of the manufacturing activity of the assessee. Hence it was argued that the same should be taken into consideration for the purpose of granting benefit U/s.80-IB(4) of the Act. The Ld. D.R on the other hand argued in support of the orders of the Revenue. 5. We have heard both the parties and carefully perused the materials available on record. Section-80-IB of the Act grants deduction to the assessee where the gross total income of the assessee includes any profits and gains derived from any eligible business prescribed under the Act. The business of the assessee is manufacturing of articles or things, not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aged under the provisions of the Act. The Hon'ble apex Court in the case Sterling Foods reported in 237 ITR 53(SC) also opined that where the nexus between the income and the industrial undertaking was not direct but was only incidental, it would not fall within the expression profit derived from industrial undertaking . Similar is the decision of the Hon'ble Apex court in the case of Pandian Chemicals Ltd., (supra) which is relied upon by the Ld. CIT (A) while holding the issue against the assessee. While analyzing all these decisions, it becomes clear from the above that the assessee would be eligible for deduction U/s. 80IB(4) of the Act for the income earned from the source of manufacturing activity. The assessee would not be e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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