TMI Blog2017 (2) TMI 446X X X X Extracts X X X X X X X X Extracts X X X X ..... taining to the year under assessment, the issue is required to be restored to the AO to decide afresh in the light of the orders passed in the preceding years. So, the grounds no.1 to 5 in both the assessment years i.e. 2009-10 & 2010-11 are determined in favour of the assessee for statistical purposes. - ITA No.346/Del./2014, ITA No.347/Del./2014 - - - Dated:- 21-11-2016 - SHRI R.S. SYAL, ACCOUNTANT MEMBER and SHRI KULDIP SINGH, JUDICIAL MEMBER For The Assessee : Shri Suresh Anantharaman, CA For The Revenue : Shri Anil Kumar Sharma, Senior DR ORDER PER KULDIP SINGH, JUDICIAL MEMBER : Since common questions of facts and law have been raised in both the aforesaid appeals, the same are being disposed off by way of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h an objective to generate employment and promote economic growth is not a capital receipt. 7. The lower authorities erred in holding that the said incentive being capital in nature is not to be deducted while arriving Book profits under section 115JB. 8. The appellant craves to add, reduce, withdraw, modify and alter the grounds of the appeal. GROUNDS OF APPEAL (AY 2010-11) 1. That on the facts and in the circumstances of the case, the lower authorities erred in law not allowing deduction U/s 80-IC on incentive granted under Vishesh Krishi and Gram Udyog Yojana (VKGUY) of ₹ 1,35,55,206/- allowed to compensate high transport cost incurred by the company. 2. It is contended that incentives granted under Vishesh Kris ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... processing of Mushrooms, Culinary Herbs and other fruits and vegetables, declared total turnover of ₹ 43.11 crores ₹ 35,89,06,421 for AYs 2009-10 2010-11 respectively. From the total gross income declared at ₹ 8.80 crores ₹ 5,78,99,271/- for AYs 2009-10 2010-11 respectively, assessee company claimed deduction of ₹ 7.29 crores ₹ 1,15,95,788/- qua AYs 2009-10 2010-11 respectively. AO observed that an amount of ₹ 1,17,83,416/- ₹ 1,35,55,206/- for AYs 2009-10 2010-11 respectively had been credited as export incentive qua AYs 2009-10 2010-11 respectively and he was called upon to explain as to why the same be not excluded from the eligible profit u/s 80IB of the Act. Assessee fil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der the scheme entitled Vishesh Krishi and Gram Udyog Yojana to promote the export of agricultural produce and their value added products and though it is stated as export incentive in Profit Loss account but it is exactly not the export incentive rather the sum received under Visesh Kristi and Gram Udyog Yojana (VKGUY); and that to compensate the high transport cost of the agricultural produce which was lighter in weight but need more space in cargo and as such, the transport cost became very high, the VKGUY was formulated because as against the total incentive of ₹ 1,35,55,206/- received the total freight outward is ₹ 2,57,97,349/- that is about 10.76% of the total value of the export for AY 2010-11. 9. From the grounds o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ature is not includible in determining the total income u/s 115JB. Again for the sake of repetition, we restore the matter to the AO to determine afresh in the light of what has been decided in the preceding years in assessee s own case and in the light of the findings returned on grounds no.1 to 5. So, grounds no.6 7 raised in both the assessment years i.e. 2009-10 2010-11 are determined in favour of the assessee for statistical purposes. 12. In view of our findings on the aforesaid grounds, impugned orders are set aside and are ordered to be restored to the AO to decide afresh in the light of the decision taken in the preceding years by affording an opportunity of being heard to the assessee. 13. Resultantly, both the aforesaid ..... X X X X Extracts X X X X X X X X Extracts X X X X
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