TMI Blog2022 (1) TMI 338X X X X Extracts X X X X X X X X Extracts X X X X ..... bay High Court on similar set of fact, wherein bagasee/bagas was held as waste for manufacturing fuel briquettes. Therefore, we do not find any merit in the grounds of appeal raised by Revenue. Further keeping in view that we have affirmed the order of ld. CIT(A) on merit, therefore, discussions of the contention of ld. DR for the revenue about the applicability of exception clause of para 10(c) of CBDT Circular have become academic. Accordingly, order of Ld. CIT(A) is affirmed resultantly the appeal of Revenue stands dismissed. - ITA Nos. 151 & 152/SRT/2020 - - - Dated:- 29-12-2021 - Pawan Singh, Member (J) And Dr. Arjun Lal Saini, Member (A) For the Appellant : Anupama Singla, Sr. DR For the Respondents : Mehul R. Shah, CA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring nil income. In the computation of income, the assessee claimed deduction of ₹ 18,16,608/- under section 80JJA of the Act. The assessee claimed that they are manufacturing of Bio-mass Fuel Bio Coal. Subsequently, the case of assessee was re-opened under section 147. Notice under section 148 dated 05.02.2015 and was issued and served upon assessee on 10.03.2015. The Assessing Officer recorded that on verification of fact that assessee's claim of manufacturing bio-degradable waste bagas. The assessee actually purchasing and using bagas as a raw material in manufacturing its final product. The raw material bagas is not waste or bio-degradable waste. It is commonly used as fuel in sugar mill and therefore cannot be consider as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubmissions of learned Senior Departmental Representative (DR) for the Revenue and the learned authorized representative (AR) for the assessee and have gone through the order of authorities below. At the outset of hearing, Ld. AR of the assessee submits that the tax effect involved in the present appeal is less than the monetary limit of ₹ 50 lakh as fixed by Central Board of Direct Tax ('CBDT' in short) in its Circular No. 17/2019 dated 08.08.2019. Therefore, the appeal of Revenue is not maintainable and liable to be dismissed out rightly. 5. On the other hand, Ld. Sr. DR of the Revenue submits that assessment was reopened on the basis of Audit objection and that audit objection was accepted by the revenue and the ground of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e considered the rival submission of both the parties and have gone through the orders of lower authorities. There is no dispute about the manufacturing activities carried out by the assessee. The only dispute is whether 'bagas' used by assessee as raw material for preparation of final product, purchased from other parties can be considered as waste for manufacturing bio-mass fuel or not. We find that on similar set of fact, the Hon'ble Bombay High Court in the case Smt. Padma S. Boara (supra) while considering the question of law whether Tribunal was justified in allowing deduction under section 80JJA on the profit derived from business of manufacturing fuel briquettes from 'bagas'. The Hon'ble Bombay High Court aft ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecting means to gather; to fetch. It is a neutral word and does not mean collection for consideration or collection without consideration. It is an admitted/undisputed position that the respondent assessee has collected bagasse from sugar factories after having made payment for the same. Therefore, the aforesaid requirement of collecting as provided under Section 80JJA of the Act is satisfied. It is a undisputed finding of fact that the collected bagasse has been used by the respondent-assessee to make briquettes for fuel as that indeed is the business of the respondent-assessee. The reliance upon the circular No. 772 dated 23/12/1998 by the appellant is misplaced. The aforesaid Circular does not restrict its benefits only to local bodies. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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