M/S NATHURAM SHRINARAYAN AGARWAL,BHOPAL vs. THE ACIT 1(1), BHOPAL

PER KUL BHARAT, J.M. : Appeals filed by the assessee are directed against the

order of CIT(A)-I, Bhopal dated 20.02.2014, for assessment

years 2008-09 and 2009-10 and CIT(A)-31, New Delhi,

Camp Bhopal, dated 26.11.2015 for assessment year 2010-

11.

I.T.A.No. 133/Ind/2016 relating to assessment year 2010-

11.The Ld. Counsel for the assessee submitted an

application for condonation of delay along with affidavit

sworn by partner Shri Anil Kumar Agrawal.

the assessee as well as affidavit. We observe that the delay

is due to reasonable cause. We condone the delay of seven

days and take up the appeal for decision.

i-: 3 :- M/s.Nathuram Shrinarayan Agarwal, Itarsi. 4. The only issue in all these appeals related to deduction u/s 80IB(10)/80IB(11A).

year 2008-09 are that the assessee had two units i.e. M/s. Ashok Dall & Oil Mills, Itarsi, which was engaged in the

business of trading and another unit under the name and style of M/s. Shrinathji Ware Housing Corporation engaged

in the business of warehousing. The assessee had claimed deduction of Rs. 11,01,597/- u/s 80IB(11A) of the Act. The

AO disallowed the claim observing that the assessee was not engaged in the integrated business of handling, storage

and transportation of food grains and rather doing warehousing job only. The AO observed that no expenses

were required for storage such as pesticides and on petrol, diesel etc. for transportation etc. The AO disallowed the

claim of deduction u/s 80IB(11A) of the Act on the ground

that the assessee was not doing integrated business of

i-: 4 :- M/s.Nathuram Shrinarayan Agarwal, Itarsi. handling, storage and transportation of foodgrains. Similar were the facts for the assessment year 2009-10 and 2010- 11. At the outset, the Ld. Counsel for the assessee submitted that the issue of claim of deduction u/s 80IB(11A) of the Income-tax Act, 1961, has been restored to the AO by this Tribunal in assessee’s own case in I.T.A.No. 129/Ind/2007 for the assessment year 2003-04. The I.T.A.T. Indore Bench on page 19 in para 6 held as under :-

“6. The next ground raised pertains to deleting the disallowance of Rs. 22,94,837/- and Rs. 43,48,437/- respectively made on account of deduction u/s 80IB of the Act. The crux of arguments on behalf of the Revenue is that full facts have not been recorded by the AO as it has been claimed that initially there was Dall Mill, and the storage house was constructed next year. However, the Ld. Counsel for the assessee defended the impugned order. Keeping in view the

i-: 5 :- M/s.Nathuram Shrinarayan Agarwal, Itarsi. totality of facts, we are in agreement with the stand of the revenue that desired inquiry was not made by the AO, consequently, the AO is directed to verify the claim of the assessee on three aspects like handling, storage and transportation of food grains and also whether it was integrated business, therefore, this ground of the Revenue is allowed for statistical purposes and remanded back to the file of the AO for examination in the light of above observations. Needless to mention here that due opportunity be provided to the assessee to substantiate its claim. The assessee is also at liberty to furnish evidence, if any, before the AO. This ground of the revenue is, therefore, allowed for statistical purposes only. The revenue has also raised the ground for inter-unit transaction (I.T.A.No. 486/Ind/07), since the claim of deduction u/s 80IB has been remanded back to the file of the ld. AO, this ground is also remanded back to him for deciding the same afresh in accordance with law after providing adequate opportunity of being heard to the assessee.”

i-: 6 :- M/s.Nathuram Shrinarayan Agarwal, Itarsi. 12. The Ld. Departmental Representative did not

controvert this submission of the assessee.

and perused the material available on record. We have also

perused the order of the I.T.A.T., Indore Bench passed in

I.T.A.No. 129/Ind/2007 etc. dated 29th April,2011. We are,

therefore, taking a consistent view as was taken by the

I.T.A.T., Indore Bench, in I.T.A.No. 129/Ind/2007 for

assessment year 2003-04. We, therefore, remand the

matter back to the file of AO for all the assessment years.

Accordingly, the AO shall decide afresh the issue of

allowance of deduction u/s 80IB(11A) of the Income-tax

Act, 1961, in accordance with law.

if the matter is restored.

i-: 7 :- M/s.Nathuram Shrinarayan Agarwal, Itarsi. 15. In the result, all the appeals of the assessee are allowed for statistical purposes.

The order pronounced in the open court on 27.06.2018.

Sd/- Sd/- (मनीष बोरड) (कुल भारत) लेखा सद�य �या�यक सद�य (KUL BHARAT) (MANISH BORAD) ACCOUNTANT MEMBER JUDICIAL MEMBER Indore; �दनांक Dated : 27/06/2018 CPU*/SPS Copy to: Assessee/AO/Pr. CIT/ CIT (A)/ITAT (DR)/Guard file. By order Private Secretary/DDO, Indore