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TMI Blog2012 (12) TMI 24X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 for consideration as part of business profit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt 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 Chemicals (supra), the deposits made with electricity ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 270 ITR 448 (Mad) and followed the decision from Hon'ble Apex Court in Raghuvanshi Mills vs.CIT; 22 ITR 484 (para 9) and distinguished on facts the decision in Vania Silk Mills Pvt. Ltd. vs. CIT; 191ITR 617 (SC) (para11). However, from the assessment order, we find that there is not even a whisper regarding fire insurance claim and the cost of the raw cotton, therefore, in principle, we also set aside the matter to the file of the learned Assessing Officer for fresh adjudication in accordance with the discussion made hereinabove. The learned Assessing Officer is also directed to verify the factual figure of loss vis-a-vis the amount of compensation received from the insurance company against loss of stock. If the Assessing Officer finds tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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