TMI Blog2011 (5) TMI 955X X X X Extracts X X X X X X X X Extracts X X X X ..... ht expenses. 2. That the Ld. CIT(A) has also not setoff the freight expenses paid by the unit against the freight subsidy received by the unit which is being the reimbursement of expenses. 3. The Ld. CIT(A) has also not considered the order of Tribunal, Chandigarh in the Assessee s own case for the same assessment year. 3. The brief facts of the case are that the assessee is carrying on manufacturing of calcite powder, course powder, etc.. The assessee had claimed deduction under section 80IA/80IB of the Income-tax Act in relation to the freight subsidy. In the original round of assessment the deduction claimed by the assessee under section 80IA/80IB of the Income-tax Act was denied. In appeal before the Tribunal though i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the net profit, freight paid, freight subsidy accrued minus freight paid and worked out the income at ₹ 4,63,434/- and thereafter expenses as per the directions of the Tribunal were allowed at ₹ 27,500/-. 6. In appeal the CIT(A) upheld the order of the Assessing Officer observing that the assessee had not been able to prove his case that there was any ambiguity in the order of the Assessing Officer. 7. The assessee is in appeal before us against the aforesaid order of the authorities below. The learned A.R. for the assessee pointed out that the basis for computing the expenses and calculation of the income in the hands of the assessee is not clear. 8. The learned D.R. for the Revenue has placed reliance on orders of Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 80IA/80IB of the Act on the freight subsidy received. 11. We have heard the rival contentions and perused the record. The issue in the present case was set aside by the Tribunal vide its order dated 19.6.2008. The issue raised before the Tribunal was in connection with the denial of deduction under section 80IA/80IB of the Act on freight subsidy which was not pressed by the learned counsel for the assessee during the course of hearing and the only grievance of the assessee before the Tribunal was in relation to the computation of disallowance after considering the expenditure incurred for earning the freight subsidy. In line with the submissions of the assessee, the Assessing Officer was directed to recompute the deduction under section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g off of the freight subsidy received against the expenditure incurred on the same, the resultant is a loss and accordingly no adjustment is required to be made in the profits of business eligible for deduction under section 80IA/80IB of the Act. In any case, the assessee in the first round of appeal before the Tribunal had not pressed the issue of allowability of aforesaid deduction under section 80IA/80IB of the Act on the freight subsidy received and had limited the grievance against the amount to be excluded from the profits of business. We direct accordingly. The grounds of appeal raised by the assessee are thus allowed. 13. In the result, the appeal of the assessee is allowed. Order Pronounced in the Open Court on 31st day of Ma ..... X X X X Extracts X X X X X X X X Extracts X X X X
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