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TMI Blog2015 (11) TMI 1071X X X X Extracts X X X X X X X X Extracts X X X X ..... d to as "the Tribunal") in ITA No. 740/CHD/2004 for the assessment year 2001- 02, claiming the following substantial questions of law:- i) Whether on the facts and law, the Hon'ble Income Tax Appellate Tribunal was justified in holding that insurance claim was not in the nature of 'other receipts' and 90% of such receipts could not be reduced from 'profit of business' under clause (baa) of Explanation below section 80HHC(4C) of I.T. Act? ii) Whether on the facts and law, the Hon'ble Income Tax Appellate Tribunal was correct in holding that the sales tax & CST were not includible in total turnover for computing deduction u/s 80HHC of I.T. Act, when the sales tax & CST were realized as a part of sale proceeds of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) of the Act. Further, the Assessing Officer was directed not to add the sales tax and CST receipts in the total turnover for computation of deduction under Section 80HHC of the Act and also to allow deduction under Section 80IB of the Act by treating duty draw back as part of profits derived from industrial undertaking. Against the order, Annexure A-II, the revenue filed an appeal before the Tribunal who vide order dated 31.8.2006 (Annexure A-III) dismissed the appeal on the issue of insurance claim and sales tax and CST following its own decision in ITA No. 742/CHD/2004 in the case of DCIT v. M/s Verma Fabrics and upheld the order of the CIT(A) in treating the duty draw back as a part of profit derived from industrial undertaking under Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion", "rent", "charges". The words "similar nature" used before the words "any other receipt" refers to and alludes to the principle of "edjusdem generis" and in fact leaves no ambiguity as to legislative intent that only such receipts would fall within the meaning of sub-clause (1) of the explanation as would partake the nature of the words preceding the expression "receipts of a similar nature". A claim for insurance arises on account of a special loss to an assessee and, therefore, does not require any degree of legal acumen or scholarship to infer that such receipt cannot be included within subclause (1) of the aforementioned explanation. We draw support for a conclusion from a judgment of this Court in CIT Vs. Khemka Containers Private ..... X X X X Extracts X X X X X X X X Extracts X X X X
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