TMI Blog2016 (6) TMI 962X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee on behalf of insurance company. Since repair and maintenance incurred by the assessee on behalf of insurance company constituted a part of business expenditure, so insurance claim obviously constituted income derived from the industrial undertaking. - Decided in favour of the assessee - TAX APPEAL NO. 1258 of 2006 - - - Dated:- 15-6-2016 - MR. KS JHAVERI AND MR. G.R.UDHWANI, JJ. FOR THE APPELLANT : MRS SWATI SOPARKAR, ADVOCATE FOR THE OPPONENT : MR KM PARIKH, SENIOR STANDING COUNSEL ORAL JUDGMENT (PER : HONOURABLE MR.JUSTICE KS JHAVERI) By way of this appeal under section 260A of the Income-tax Act, 1961, the appellant has challenged the order of the Income-tax Appellate Tribunal (hereinafter referred to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing of the appellant and consequently, the appellant cannot claim deduction under section 80-HH and 80-I of the Income-tax Act on the said income. Therefore, the decision of the Tribunal is bad in law. 5. Learned counsel for the respondent-revenue has contended that the Tribunal was right in law in excluding the entire receipt and not income component embedded in such receipt in respect of insurance claim received by the assessee while calculating deduction under section 80-HH and 80-I of the Act. 6. We have heard learned counsel for the parties. So far as the issue under consideration is concerned, it is squarely covered by the decision of the ITAT, Delhi Bench E, in the case of Munjal Showa Ltd. vs. Deputy Commissioner of Income-ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lowing the deduction under section 80-I on the insurance claim. Similarly, except for the amount of interest on deposit, the balance interest was in the nature of business income and the Assessing Officer was directed to allow deduction under section 80-I on such income. The same was the case with the miscellaneous receipt. The Assessing Officer was directed to treat such income as derived from industrial undertaking and allow deduction under section 80-I. As regards rent, the same could not be treated as business profit and the Commissioner (Appeals) had rightly disallowed the claim of deduction under section 80-I on that account. 7. In light of the above decision, we allow the appeal by answering the question in favour of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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