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Income Tax Appellate Tribunal, “A ” BENCH, CHENNAI
Before: SHRI N.R.S. GANESAN & SHRI S. JAYARAMAN
आदेश/ O R D E R
PER S. JAYARAMAN, ACCOUNTANT MEMBER:
The assessee filed this appeal against the order of the Commissioner of Income Tax (Appeals)-3, Chennai in dated 26.09.2016 for assessment year 2012-13.
M/s. Oceanic Tropical Fruits Pvt. Ltd., the assessee is manufacturer and export of aseptic fruits pulp, puree, concentrates.
While making assessment for assessment year 2012-13, the assessee claimed deduction u/s. 80IB(11A) on certain receipts viz., exchange fluctuation, interest received, other income, sale of licence etc. The AO required the assessee to show cause why the “other income” should not be excluded from the profits of the business for computing the deduction u/s. 80IB(11A). Since, the assessee has not furnished any reply, he completed the assessment excluding the “other income” for the purpose of computation of deduction u/s. 80IB(11A). Aggrieved, the assessee filed an appeal before the CIT(A). The Ld CIT(A) dismissed the appeal. Aggrieved against that order the assessee filed this appeal.
The Ld. AR submitted that the assessee claimed deduction to the tune of Rs. 5,70,37,903/- u/s. 80IB(11A) in respect of certain income disclosed as “other income” in the audited P&L account. The Ld. AO disallowed the above income for the purpose of deduction u/s. 80IB(11A). The interest income is very much part of business and therefore interest incurred on the interest and other income are to be reckoned for the purpose of deduction u/s. 80IB(11A). However, neither the Assessing Officer nor the Ld. CIT(A) considered the claim properly and hence he pleaded to allow the appeal. Per contra, the Ld. DR supported the orders of the lower authorities stating that the assessee claimed deduction, but when the particulars were called for in support of the deduction claimed, the assessee has not furnished the required material. Therefore, the disallowance made by the lower authorities are justified. Therefore, the Ld. DR pleaded that the assessee’s appeal may be dismissed.
We heard the rival submissions and gone through the relevant material. It is clear from the above that the assessee has claimed deduction u/s. 80IB(11A). When the Assessing Officer called for the details to ascertain the nature of receipts, the assessee has not furnished any particulars. The commissioner merely recorded a finding that on perusal of assessment order, it is noticed that the assessee has failed to produce required details before the AO to confirm the order of the Ld. AO. Therefore, we are of the view that the assessee’s claim has not been properly examined by the lower authorities for the reason that the assessee has not furnished the required material before them.
In the facts and circumstances, in the interests of justice, we set aside the orders of the lower authorities and remit the issue back to the AO for a fresh examination. The assessee shall lay relevant materials in support of its contention before the AO and comply with the requirements of the AO in accordance with law. The AO is free to conduct appropriate enquiry as deemed fit, but he shall furnish
:-4-: adequate opportunity to the assesssee on the material etc to be used against it and decide the matter in accordance with law.
In the result, the assessee’s appeal is treated as allowed for statistical purposes.
Order pronounced on Tuesday, 18th February, 2020 at Chennai.