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TMI Blog2016 (3) TMI 270X X X X Extracts X X X X X X X X Extracts X X X X ..... that freezing charges does not form part of the processing of vegetables and it is altogether different source of income or different business activity of the assessee. Only reason advanced by AO is that receipt in income is storage charges. Therefore, we do not have any hesitation in in holding that freezing charges earned by the assessee are part of the composite activity of processing of peas. The decision relied upon by the ld. DR of Hon‟ble Supreme Court in case of Liberty India Vs. CIT [2009 (8) TMI 63 - SUPREME COURT ] does not apply to the facts of this case as in that case held that the DEPB/ duty Drawback which has received from the Govt. of India to support the assessee are not income derived from the industrial undertakin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... according to his own surmises and belief and holding that the provisions of section 80-IC needs to be interpreted liberally. 3. Whether Ld. CIT (A) has erred in law in adding the word 'preservation in point 4(e) of Part-C of Schedule XIV and accordingly allowing the benefit of deduction u/s 80-IC on rental income. 4. Whether Ld., CIT(A) has erred in law and on facts allowing the benefit of deduction u/s 80-IC on rent income ignoring the decision of the Hon'ble Apex Court in the case of Liberty India Vs. CIT, 183 Taxman 349(2009). 5. That the Ld. CIT (A) has erred in justifying the claim u/s 80-IC by incorporating the provision of 80-IB (11A), which is separate provision and not even claimed. 6. That the orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before the learned Commissioner of Income tax (Appeals) who allowed the deduction on this income. According to him, the assessee is engaged in the business of processing, preserving and packaging of fruits and vegetables and meat products etc. which is integrated business of handling, storage and transportation of these materials. He held that this rent income is derived from the eligible industrial undertaking. Now against the order of learned Commissioner of Income tax (Appeals) revenue is in appeal before us. 5. The ld. DR relied heavily on the order of the AO and has stated that when there is no ambiguity in the law there should not be liberal interpretation and therefore according to the ld. DR assessee is not eligible for the deduc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ocessing of vegetables as defined in various dictionaries. He also submitted that statutory provision governing deductions are to be liberally construed. It was also one of the arguments that even in the case of Job worker and in the case of Works Contact deduction u/s 80IC is allowed. Regarding the decision of the Hon‟ble Supreme Court in the case of Liberty India Vs. CIT 183 Taxmann 349 (SC) raised in one of the grounds of this appeal that Hon‟ble Supreme Court has answered this issue with respect to claim of DEPB/ duty Drawback are not part of the profit of the industrial undertaking and it held that it is not eligible for deduction. He submitted that in this case the income itself is from the undertaking and therefore has d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It was also submitted that as a part of the above process the peas are required to be freezed in cold room where the temperature is minus 20 degree Celsius or below. Assessee has prepared two types of bills i.e. (1) as processing charges and (2) as freezing charges, instead of one composite bill for processing charges. On perusal of the balance sheet, it is evident that the assessee has shown freezing charges as rent income in the profit and loss account for this year and in the last year too. This fact we could verify from the profit and loss account itself Wherein in the year ended 31.03.2008 also the assessee has credit an amount of ₹ 24,79,876/- as rental income which are of similar nature and indisputably deduction on this is gr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing of peas. The decision relied upon by the ld. DR of Hon‟ble Supreme Court in case of Liberty India Vs. CIT (supra) does not apply to the facts of this case as in that case Hon‟ble Supreme Court held that the DEPB/ duty Drawback which has received from the Govt. of India to support the assessee are not income derived from the industrial undertaking. Here in this case freezing activity, which is carried out by the assessee is part of the composite activity of processing of vegetables. It is not the case of the revenue that freezing activity are not at all required to carry out-processing of vegetable performed by the assessee of Mother Dairy Food Pvt. Ltd. Therefore, we confirm the order of the learned Commissioner of Income ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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