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TMI Blog2013 (2) TMI 623X X X X Extracts X X X X X X X X Extracts X X X X ..... The word "or" in the context here means and should be interpreted as disjunctive particle. The statute should be read in its ordinary, natural, and grammatical sense. - Decided in favor of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... under scientifically controlled conditions including refrigeration and other facilities necessary for the preservation of such produce." The Tribunal found that the deduction from profits of business of setting up and operating cold storage facility for agricultural produce is applicable to cold storage and that taking into account the definition of 'cold chain facility', it cannot be said that both storage and transportation of agricultural produce should be necessary to admit the deduction. The words "storage" and "transportation" are separated by the word "or" which clearly suggests that both these facilities may be offered together or separately provided these are within the chain of facilities. In paragraphs 28 and 29 the Tribunal ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... system or another industrial undertaking having only refrigerated transportation system will not be eligible for deduction u/s 80IB (II). This view of the Revenue is fortified by the use of the word "and" in the explanatory notes, between "storage" and "transportation" and by the common sense understanding of the words "chain of facilities" supported by documents on the subject released by some State Government, public sector undertakings or by some foreign agencies as referred to by ld. DR. 29. The second interpretation is to read the definition as per conjunction "or" used therein i.e to read the "storage" and "transportation" separately i.e a cold chain facility means "a chain of facilities for storage"... or "a chain of facilities for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e that facilities provided by the assessee are inbuilt or integral to cold storage plant and hence, are not additional and thus do not become part of chain of facilities..........." The Tribunal also relied upon a speech of Finance Minister while introducing Finance Act, 1999 in which he made it clear that more and more cold storage plants and cold storage transportation either singly or in integrated manner should come up and help in preservation of agricultural produce. The Tribunal found that this intention cannot be fulfilled, if a restricted meaning is given to the definition of cold chain facility, and unless there is an integrated facility for storage and transportation from "end to end" an industrial undertaking is not possible. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he consumer join together to form a chain as canvassed by the Revenue, will get benefit independently. Similarly, it is not made clear by the Revenue that if an assessee owning a fleet of refrigerated transportation only, will get deduction u/s 80IB (11), even though it does not own any cold storage plant. If a fleet of refrigerated transportation can be called a chain of facilities for transportation, then multiple chambers in a big cold storage plant should be equally said to be a chain of facilities for storage, or even owning number of cold storage plants of single chambers can be called a chain of facilities for storage. (6) Further sub section (11) uses the words ?a cold chain facility?. Use of the word ?a? signifies that even one ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax vs. Madho Pd. Jatia (1976) 105 ITR 179 (SC); Commissioner of Income tax vs. Kulu Valley Transport Co. P. Ltd. (1970) 77 ITR 518 (SC) and Commissioner of Income-tax vs. Gwalior Rayon Silk Manufacturing Co. Ltd. (1992) 96 ITR 149 (SC). We find considerable substance in the reasons given by the Tribunal in coming to a conclusion that it is not necessary that there should be facility of transportation along with the facility of cold storage to constitute a cold chain facility. The business of cold storage alone, without any transportation facility with refrigeration back to back upto consumption and, linking farmer and market also qualifies for deduction in terms of provisions of Section 80-1B (11) of the Act. The word "or" in the context ..... X X X X Extracts X X X X X X X X Extracts X X X X
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