TMI Blog2013 (3) TMI 841X X X X Extracts X X X X X X X X Extracts X X X X ..... ge and transportation of food grains and hence the assessee is not entitled to deduction u/s.80IB(11A). The addition made by the Assessing Officer may kindly be deleted. 2. Brief facts of the case are that the assessee is an individual engaged in the business of running a petrol pump and warehousing. The assessee has filed return of income on 10.11.2006 declaring total income of ₹ 3,08,660/-. The Assessing Officer has assessed the income of the assessee at ₹ 6,29,888/- by making additions of ₹ 3,21,228/-, as under: 1 Disallowance of deduction claimed in respect of warehousing business u/s.80IB(11A) ₹ 2,47,639/- 2 Disallowa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 19.12.2008 and submitted the report to the Assessing Officer which is reproduced by the Assessing Officer in para 5 of the assessment order, which reads as under: At the time watchman of the warehouse was present. During the course of inquiries it was gathered that the rate for keeping the food grains in the warehouse was ₹ 5 per bag. It is also gathered that warehouse is not provided any vehicle facilities to the customers only Hamali charges @ ₹ 1.50 and were charges at ₹ 2 per bag to are recovered from the customer. The Manager Shri Ram Pandey was also contacted on Mobile No.9420887385. He also confirmed the same above facts. He also stated that the vehicle facilities are not provided by the owner but the same has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ived from such undertaking for five assessment years beginning with the initial assessment year and thereafter, twenty-five per cent (or thirty per cent where the assessee is a company) of the profits and gains derived from the operation of such business in a manner that the total period of deduction does not exceed ten consecutive assessment years and subject to fulfilment of the condition that it begins to operate such business on or after the 1st day of April, 2009.] From the above it is clear that in order to claim deduction u/s.80IB(11A), the assessee has to earn income from integrated business of handling, storage and transportation of food grains. The main reason for rejecting the claim of the assessee is that the assessee is not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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