TaxTMI 
TaxTMI 
2014 (9) TMI 962
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....lenged the disallowance of claim of deduction under section 80-IC of the Income-tax Act. The assessee challenged the disallowance of Rs. 14,35,198 under section 80-IC of the Income-tax Act before the learned Commissioner of Income-tax (Appeals). During the course of assessment proceedings, the Assessing Officer noted that the assessee has claimed deduction of Rs. 14,35,198 under section 80-IC of the Income-tax Act in Schedule XIV (Part C) clause 18, i.e., "non-timber forest product based industries". The assessee also moved an application to the Additional Commissioner of Income-tax, Ambala Range, Ambala under section 144A of the Income-tax Act vide his letter dated December 22, 2011 and submitted as under : &....
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....d to indirectly. Therefore, the claim of the assessee under section 80-IC of the Income-tax Act was not found allowable. 4. The assessee challenged the findings of the Assessing Officer before the learned Commissioner of Income-tax (Appeals) and the submissions of the assessee are reproduced in the appellate order in which the assessee briefly explained that the assessee is engaged in manufacturing of limestone powder and poultry grit. The basic raw material for same is limestone. The assessee is claiming deduction under section 80-IC(2)(b)(ii) of the Income- tax Act. In this case the assessee is producing limestone powder in the State of Himachal Pradesh. Limestone powder is covered under Schedule XIV at Schedule. No. 18 in the Part C, wh....
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....-IC(2). This section applies to any undertaking or enterprise,- (b) which has begun or begins to manufactured or produce any article or thing, specified in the Fourteenth Schedule or commences any operation specified in that Schedule, or which manufactures or produces any article or thing specified in the Fourteenth Schedule or commences any operation specified in that Schedule and undertakes substantial expansion during the period beginning- (ii) on the 7th day of January, 2003 and ending before the 1st day of April 2012, in the State of Himachal Pradesh or the State of ....
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....specified mention of items allowed under this section. Limestone powder and poultry grit cannot be covered under non- timber forest produce by any stretch of imagination since limestone is extracted from the hills/mountain side quarries after clearing the forest from underneath the ground surface/hill side which is not the intention of the Legislature. Moreover Schedule XIV is a restrictive list and items not specified by it cannot implied or widely construed to or derived indirectly. Therefore the claim under section 80-IC is held as not allowable and this ground of appeal is dismissed." 6. We have considered the rival submissions carefully. 7. Learned counsel for the assessee reiterated the submissions made before the authorities below ....
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....e case of the assessee. Copy of Industrial policy of Himachal Pradesh and Uttaranchal has been filed before us in which thrust industries for these states includes non timber forest product based industries and list of industries that can be permitted in Doon Valley with proper environmental control arrangement includes "lime manufacturing". On going through the same, we find that even if definition of non-timber forest produce is not defined in the Income-tax Act but aid from other acts could be taken to decide the issue because the Indian Forest Act, 1927 and Industrial Policy of Himachal Pradesh clearly support the case of the assessee that the forest produce includes "limestone" which is basic raw material used by the assessee in the un....
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....sessee explained before the Assessing Officer that he has an agricultural income estimated at Rs. 1,60,000 per annum. However, no evidence regarding sale of agricultural produce was filed. No such agricultural income is declared in the return of income. The assessee in his family has his wife and two school going children. The Assessing Officer accordingly estimated the household expenses at Rs. 20,000 per month and made addition of Rs. 2,40,000. 12. The learned Commissioner of Income-tax (Appeals) dismissed these grounds of appeal in impugned order. 13. Learned counsel for the assessee did not dispute the estimation of household expenses by the Assessing Officer. However, he has submitted that the assessee has agricultural income and he ....