TaxTMI 
TaxTMI 
2013 (2) TMI 623
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....ed. The Tribunal confirmed the order of the CIT (A) allowing the appeal and setting aside the order of the A.O. disallowing to the assessee the deduction in the business of cold storage under Section 80IB (11) of the Act. The appeal has been preferred on the substantial question of law framed in the memo of appeal as follows:- "Whether the Hon'ble ITAT was correct in concluding that the income derived from running a stand - alone cold storage plant is also eligible for deduction in terms of provisions of Section 80IB (11), in a similar manner in which income derived from running cold storage facility is eligible for such deduction under the provisions of Section 80IB (11)". The assessee claimed deduction from out of the profits fro....
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....y provided these are within the chain of facilities. In paragraphs 28 and 29 the Tribunal has considered the argument advanced by the department and has held as follows:- "28. So far as the other conditions for eligibility of deduction u/s 80IB (11) are concerned, there is no dispute. It is fairly admitted by both the parties that whatever facilities assessee has, they are under scientifically controlled conditions. Thus, the dispute is centralized on the interpretation of the definition of "cold chain facility" as provided in sub section (14) (a) as reproduced above. The first view of definition is ....cold chain facility means "a chain of facilities for storage or transportation...". From this interpretation, we find that even thoug....
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.....e a cold chain facility means "a chain of facilities for storage"... or "a chain of facilities for transportation".....From this interpretation one can infer that if an industrial undertaking has a chain of facilities for storage with other conditions fulfilled or if it has a chain of facilities for transportation with other conditions fulfilled then both types of assessees will be entitled for such deduction under this section. There is no dispute that assessee is handling agricultural produce such as potatoes. There is also no dispute that the facilities laid down for storage are scientific. In our considered opinion, chain of facilities here would mean several facilities in sequence for the purposes of storage or transporation of agricu....
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....cility for storage and transportation from "end to end" an industrial undertaking is not possible. The Tribunal has thereafter given reasons for not accepting the interpretation pleaded by revenue. These reasons are enumerated as follows:- (1) It is not explained by Revenue as to what facilities should an industrial undertaking have to constitute a chain of facilities other than what the assessee has described for the purposes of storage. (2) Integrated business of cold storage and cold transportation is not envisaged by this section or by the definition of cold chain facility as distinguished from Section 80IB (11A) where such integrated business is visualized. (3) Non obstante clause used in the beginning of sub section (11) s....
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.... (6) Further sub section (11) uses the words ?a cold chain facility?. Use of the word ?a? signifies that even one chain of facility will be entitled to deduction i.e. any industrial undertaking having facility either in the beginning or in the middle or in the end of an otherwise integrated business can avail the benefit. (7) As per interpretation canvassed by the Revenue, unless an assessee, owning an industrial undertaking operating the composite business of transportation and storage from farmer to the consumer, will not be entitled to such deduction under Section 80IB (11). In other words, unless somebody has infrastructure to that extent, benefit could not be availed. This restricts conferring of benefit to a very small segment of ....