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TMI Blog2013 (11) TMI 206X X X X Extracts X X X X X X X X Extracts X X X X ..... ng insurance claim in respect of loss of raw material - Decided in favour of the assessee. Compensation received for not supplying raw material – the compensation amount of Rs.3 lakh received by it from Crescent Chemsole Pvt. Ltd - Held that:- The assessee had to purchase raw materials from the market at higher price - The assessee has to show that there is a direct nexus of such income with the industrial undertaking – Partly allowed in favour of the assessee. - ITA No.650/Mum/2012 - - - Dated:- 5-2-2013 - Shri R. S. Syal, AM And Dr. T. M. Pavalan, JM,JJ. For the Appellant : Shri Mayur Makadia For the Respondent by : Shri Dipak Kumar Sinha ORDER Per R. S. Syal (AM) :- This appeal by the assessee arises ou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us year relevant to the assessment year under consideration. It was contended that since the same related to recoupment of loss on stock in trade, the same was deductible. The Assessing Officer refused this claim. The learned CIT(A) echoed the assessment order on this point. 5. After considering the rival submissions and perusing the relevant material on record, it is observed that the insurance claim of Rs.90.91 lakh accepted by the insurance company comprised of the loss of stock-in-trade to the tune of Rs.85.07 lakh and the remaining amount towards plant and machinery. In the preceding year, the assessee received Rs.80 lakh, which it adjusted against the raw material cost and the same was granted the benefit of deduction as well. Ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deduction u/s 80-IB(4) in respect of Rs.5.07 lakh representing insurance claim in respect of loss of raw material. We order accordingly. 6. The other item for which the assessee was denied deduction u/s 80-IB(4) is Rs.Compensation for not supplying raw material' in time. The assessee received compensation of Rs.3 lakh on account of contract with M/s.Crescent Chemsole Pvt. Ltd. and claimed deduction u/s 80-IB on this amount. On being called upon to explain as to why deduction should not be denied on this amount, the assessee stated that it made a contract with Crescent Chemsole Pvt. Ltd. for supply of 100 MT of Di-Octyl Phthalate in June 2006. As the raw material was not supplied, the assessee had to purchase similar raw material from ..... X X X X Extracts X X X X X X X X Extracts X X X X
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