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Showing contexts for: battery in Amar Raja Batteries Ltd. vs Asstt. Commissioner Of Income Tax on 27 April, 2004Matching Fragments
4. On a careful consideration of the facts and circumstances of the case, we set aside the issue to the file of the assessing officer with a direction to recompute the deduction under Section 80-IB by recalculating the business income from Industrial Battery Division. This alternate ground of the assessee is allowed for statistical purposes. The ground claiming weighted deduction of 125% Under Section 35(2AB) is hereby dismissed.
5. The second issue is whether the following incomes can be said to have been derived from the industrial undertaking, for the purposes of computing the deduction under Section 80IB.
.3. As for claims received of Rs. 21,56,247, from the break up of this furnished at 33 of the assessee's paper-book, it can be seen that these claims were received from insurance company towards damages caused to the assessee's goods i.e. batteries during transportation. Thus, these insurance claims were received on revenue account. In. these circumstances, the issue is covered in favour of the assessee by the decision of the Delhi Bench of the Tribunal in Dy. CIT v. Metro Tyres Ltd. (79 ITD 557) and the decision of this Bench of the Tribunal in Ratnam Poultry (P) Ltd. v. Dy. CIT (ITA No. 696/Hyd/99) vide order dated 26.2.2004. The expenditure based on which the insurance amount is paid is booked to the Profit & Loss Account and has gone to reduce the profit derived from the undertaking. Even if this receipt is to be taken as that which is not derived from industrial undertaking, then also net of income, i.e. income minus expenditure has to be taken and this would be 'nil'. In other words, gross insurance receipt can never be taken. Thus, respectfully following the same, wherein this Bench relied on relied on the Hon'ble Supreme Court decision in Raghuvanshi Mills Ltd. (22 ITR 484), we allow the grounds of the assessee on this aspect and direct the assessing officer to recompute the deduction under Section 80IB taking this income also as derived from industrial undertaking.