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TMI Blog2014 (9) TMI 962X X X X Extracts X X X X X X X X Extracts X X X X ..... in the State of Himachal Pradesh and as such claim of the assessee under section 80-IC should have been allowed by the authorities below. Accordingly, we set aside the orders of the authorities below and allow the claim of the assessee of deduction under section 80-IC - Decided in favour of assessee. Addition on account of household expenses - Held that:- Assessee has agricultural holding which is explained in the document of the agricultural land to be under cultivation would suggest that some benefit of agricultural income earned by the assessee, can be given to the assessee. Therefore estimate made by the assessee of earning agricultural income at ₹ 1,60,000 the assessee can be given benefit of agricultural income in a sum of ₹ 80,000 only. The assessee thus would be entitled for meeting out household expenses out of agricultural income in a sum of ₹ 80,000 only. Thus the addition of ₹ 2,40,000 made by the authorities below would be reduced to ₹ 1,60,000. - Decided partly in favour of assessee. - ITA No. 683/CHD/2013 - - - Dated:- 23-9-2014 - SHRI BHAVNESH SAINI AND SHRI T.R. SOOD, JJ. For the Appellant : Shri Sudhir Sehgal For the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ath the ground surface which can at this case is the hill side. Moreover Schedule XIV of the Income-tax Act is a restrictive list and items not covered by it explicitly cannot be implied/derived/ascribed/widely constructed to indirectly. Therefore, the claim of the assessee under section 80-IC of the Income-tax Act was not found allowable. 4. The assessee challenged the findings of the Assessing Officer before the learned Commissioner of Income-tax (Appeals) and the submissions of the assessee are reproduced in the appellate order in which the assessee briefly explained that the assessee is engaged in manufacturing of limestone powder and poultry grit. The basic raw material for same is limestone. The assessee is claiming deduction under section 80-IC(2)(b)(ii) of the Income- tax Act. In this case the assessee is producing limestone powder in the State of Himachal Pradesh. Limestone powder is covered under Schedule XIV at Schedule. No. 18 in the Part C, which reads as under : Non-timber forest product based industries. The phrase non-timber forest product based industries means any industry that does not use forest timber and forest product produce. It is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... specifies the activity or article or thing or operation along with excise classification for the State of Himachal Pradesh and Uttaranchal. 4.7 The appellant's plea of inclusion under S. No. 18 of Part C to Schedule XIV i.e., non-timber forest based industries is not acceptable in view of the specified mention of items allowed under this section. Limestone powder and poultry grit cannot be covered under non- timber forest produce by any stretch of imagination since limestone is extracted from the hills/mountain side quarries after clearing the forest from underneath the ground surface/hill side which is not the intention of the Legislature. Moreover Schedule XIV is a restrictive list and items not specified by it cannot implied or widely construed to or derived indirectly. Therefore the claim under section 80-IC is held as not allowable and this ground of appeal is dismissed. 6. We have considered the rival submissions carefully. 7. Learned counsel for the assessee reiterated the submissions made before the authorities below and also referred to the Indian Forest Act, 1927 and Industrial Policy of Himachal Pradesh. Copies of the same are placed on recor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has allowed such activity to the assessee. Limestone is therefore a non-timber forest product. Schedule XIV (Part C, Item No. 18) provides deduction to non-timber forest product based industries , which is limestone, is specifically included in the forest produce and is a non-timber forest products. It is a cardinal principle of interpretation of statutes that the words of the statute must be understood in their natural, ordinary or popular sense and construed according to their grammatical meaning. The words of a statute must, prima facie be given their ordinary meaning. Since in Schedule XIV the item- non-timber forest product based industries is mentioned, it would definitely include manufacturing of limestone powder in the State of Himachal Pradesh and as such claim of the assessee under section 80-IC should have been allowed by the authorities below. Accordingly, we set aside the orders of the authorities below and allow the claim of the assessee of deduction under section 80-IC of the Income-tax Act. 9. Grounds Nos. 1 to 3 of the assessees' appeal are allowed. 10. In grounds Nos. 4 and 5 the assessee has challenged the addition of ₹ 2,40,000 on account of h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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