TMI Blog2015 (9) TMI 1723X X X X Extracts X X X X X X X X Extracts X X X X ..... Ld.CIT has passed a cryptic order without any reasoning, we are of the considered view that the matter requires to be remitted back to the file of the Ld.CIT in order to pass a reasoned order after giving opportunity to the assessee of being heard. He shall also look into the detailed letter filed by the assessee before us which is supposed to have been filed before the Ld. CIT (A) on the earlier occasion while deciding the issue. Appeal of assessee is allowed for statistical purposes. - I.T.A.No.1136/Mds. /2015 - - - Dated:- 30-9-2015 - SHRI N.R.S.GANESAN, JUDICIAL MEMBER AND SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER For The Appellant : Mr.S.Sridhar, Erode, Advocate For The Respondent : Mr.Arun C.Bharat,CIT, D.R PER A.MO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oss A/c of the company revealed that the sales of the company included ₹ 33,49,14,380/.- for finished goods arid ₹ 13,81,09,580/- of other item sales and also ₹ 2,90,00,571/- as conversion charges and a claim of deduction u/s 80IB(11a) towards processing, preservation and packaging of fruits and vegetables of about ₹ 91,06,185/- ha been made. But it is to be noted that the other item sales of ₹ 13,81,09,580/- are the sales of mangoes which are sold without processing and the deduction u/s 80IB(11a) is given to an undertaking which derives profit from the business of processing preservation and packaging of fruits or vegetables or meat and meat products or poultry or marine or dairy products or from the integ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rroneous and prejudicial to the interest of the Revenue by stating that the Ld. Authorized Representative had agreed for the proposal U/s. 263 and has no objection in passing such order. The gist of the order is reproduced herein below for reference 3. In response to the above notice, nobody appeared from the assessee side on the said date. So the case was re-posted for hearing on 16.03.2015. The A.R of the assessee company Shri K.Kalaiarasan FCA appeared and case was discussed with him. The Authorized Representative of assessee argued to the proposal U/s.263 and has no objection in passing the Order u/s.263. 4. In view of the above and the fact that the assessment order for the assessment year 2011-12 is erroneous and prejudicial to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Income tax Act 1961 u/s 80IB (11a) an undertaking is eligible for deduction if. An undertaking deriving profit from the business of processing preservation and packing of Fruits or Vegetables . The business includes processing, Trading, Processing on contract basis. As per the Act it is specified, but that the eligible business is who has in the process preserving, processing and packing of fruits . The above condition is fulfilled in processing for our sales and processing on contract basis. The process includes processing on job work basis. As per the provisions of the section 2(13) business includes any trade commerce or manufacture or any adventure or concern In the nature of Trade Commerce or manufacture So the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cost on day to day basis and plan for their market requirements. - 3. In the outright purchase of processed fruit, the price has to be pre-decided prior to the commencement of raw material season. Which will not be related to the market rate. It will have market advantage and disadvantages. 4. The high quality and required quality standard of fruits can be purchased at the required rate (higher level also) by the buyer depends upon the quality of the finished goods. 5. On daily Basis, The raw material procurement will be made on pre decided rate based on the prevailing market conditions 6; During the year, we have sold fruits for a value of ₹ 13, 81,09,580. On behalf of our buyers and converted and packed the same as fruit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... D. Profit Margin on sale 17,05,548 Less: Expenses related to sales A. Interest on working capital 26,83,070 B .Administrative expenses UNLOADING EXPENSES 6,80,400 Bank Charges 8,30,524 Director Salary 9,60,000 Staff salary-20% 4,66,8 16 Refreshment exp 2,24,473 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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