TaxTMI 
TaxTMI 
2020 (4) TMI 369
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....claimed towards deduction under section 80IC of the Income Tax Act, 1961 (for short "the Act"). 3. Brief facts are, the assessee, an individual, is engaged in the business of manufacturing plastic packing material through his Proprietorship concern "Creative Plastopack". For the assessment year under dispute, the assessee filed his return of income on 23rd September 2013, declaring income of Rs. 12,52,69,162, after claiming deduction under section 80IC of the Act. In the course of assessment proceedings, the Assessing Officer while verifying assessee's claim of deduction under section 80IC of the Act found that it also includes warehousing charges of Rs. 10,16,400. Noticing this, he called upon the assessee to explain why claim of deduct....
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....nnected to the business of the undertaking. He submitted, as per the terms of the agreement, the customer has to lift the goods within the permitted time limit. He submitted, if a customer does not lift the goods within the permitted time limit, the assessee has to store the goods in its warehouse and for providing the facility of storage he charges certain fee towards warehousing charges. Thus, he submitted, warehousing charge being integrally connected to the business of the assessee is eligible for deduction under section 80IC of the Act. Further, he submitted, the language used in section 80IC of the Act is different from language used in section 80HHC / 80HH of the Act. He submitted, like section 80IB, section 80IC also speaks of profi....
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....essee qualify for deduction under section 80IC of the Act. On a reading of section 80IC of the Act it becomes clear that any profits and gains derived by an undertaking from any business will be eligible for deduction under section 80IC of the Act. The expression "any business" would mean any business carried on by the undertaking or enterprise. In the present case, the business of the assessee is manufacturing of plastic packing material. Thus, prima facie, it appears that the assessee is not engaged in the business of warehousing. However, it is the contention of the assessee from the assessment stage itself that in the event the customer does not lift the goods within the permissible time limit, warehousing charges is levied for storage ....
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....ee, the Assessing Officer found that the expenditure shown under the following heads were not supported by any third party evidence, but are only supported by self made vouchers. i) Conveyance Expenses Rs. 5,84,368 ii) Staff Welfare Expenses Rs. 1,37,217 iii) Labour Welfare Expenses Rs. 3,29,039 9. Stating that assessee's claim relating to the aforesaid expenditure is not fully verifiable, the Assessing Officer disallowed 20% out of the expenditure claimed under the aforesaid three heads. As a corollary, he also made proportionate disallowance from the deduction claimed under section 80IC, which worked out to Rs. 52,531. 10. While deciding assessee's appeal on the issue, learned Commissioner (Appeals) restri....