2013 (3) TMI 841

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....business of handling, storage and transportation of food grains and hence the assessee is not entitled to deduction u/s.80IB(11A). The addition made by the Assessing Officer may kindly be deleted. 2. Brief facts of the case are that the assessee is an individual engaged in the business of running a petrol pump and warehousing. The assessee has filed return of income on 10.11.2006 declaring total income of ₹ 3,08,660/-. The Assessing Officer has assessed the income of the assessee at ₹ 6,29,888/- by making additions of ₹ 3,21,228/-, as under: 1 Disallowance of deduction claimed in respect of warehousing business u/s.80IB(11A) ₹ 2,47,639/- 2 Disallowance of transportation expenses ₹ 25,000/- 3 Disallow....

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.... the food grains in the warehouse was ₹ 5 per bag. It is also gathered that warehouse is not provided any vehicle facilities to the customers only Hamali charges @ ₹ 1.50 and were charges at ₹ 2 per bag to are recovered from the customer. The Manager Shri Ram Pandey was also contacted on Mobile No.9420887385. He also confirmed the same above facts. He also stated that the vehicle facilities are not provided by the owner but the same has to be arranged by the customers themselves." 4. The Assessing Officer, therefore, disallowed the claim of the assessee u/s.80IB(11A) of the Act and added the same amount to the income of the assessee. Matter was carried before the CIT(A), who has confirmed the order of the Assessing O....

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....of deduction does not exceed ten consecutive assessment years and subject to fulfilment of the condition that it begins to operate such business on or after the 1st day of April, 2009.]" From the above it is clear that in order to claim deduction u/s.80IB(11A), the assessee has to earn income from integrated business of handling, storage and transportation of food grains. The main reason for rejecting the claim of the assessee is that the assessee is not providing facility of transportation of food grains. The Assessing Officer as well as the CIT(A) have relied mainly on the report of the Inspector who visited the spot on 19.12.2008 as reproduced in para 3 of this order. There is nothing on record to suggest that the above said report....