2012 (12) TMI 24

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.... activity did not include the amount of insurance claim, received by the assessee, because the amount of loss by fire of raw cotton was more than its cost. 2. During hearing of this appeal, Shri P.D. Nagar, the ld. Counsel for the assessee, advanced his arguments which are identical to the ground raised by placing reliance upon the decision in the case of CIT vs. Khemka Container Private Limited (275 ITR 559) (P&H) by further submitting that the insurance claim received at Rs.20.34 lacs was deducted from the cost of material itself and still there was a loss. The crux of arguments is that when the cost of raw cotton was debited in profit and loss account, insurance claim so received towards loss of raw cotton, due to fire, is eligible fo....

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....CIT, in these decisions it was held that the amount of insurance claim was received by the assessee cannot be held to be income derived from industrial undertaking so as to qualify for deduction u/s 80IB of the Act, he, therefore, set aside the assessment order for de novo consideration to the file of the learned Assessing Officer which is under challenge before the Tribunal. 3.2 We have perused the orders from the Hon'ble Apex Court. In the case of Sterling Foods (supra) the Hon'ble Court held that profits from sale of import entitlements are not profits derived from industrial undertaking, therefore, not includible in income for computing special deduction within the meaning of section 80HH of the Act whereas in the case of Pandian Che....