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TMI Blog2015 (11) TMI 1760X X X X Extracts X X X X X X X X Extracts X X X X ..... ofit. The benefit must be from integrated business including transportation. The assessee’s claim that hiring Riksha will suffice the conditions of integrated business of transportation with handling and storage shall not be sufficient. Rather it will go against the very spirit of the Act. This deduction is available only on the profit derived from the integrated business of handling, storage and transportation of foodgrains. No merit in the pleading of the assessee and sustain the orders of the authorities below. - Decided against assessee. Depreciation on the building and warehouse - assessee did not claim depreciation on the building - Held that:- The assessee claims that the audited balance sheet of the assessee shows the addition of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lfilled the conditions as prescribed in the Act. The learned CIT(A) has confirmed the action of the Assessing Officer. Now the assessee is in appeal before us. 4. Before us, the learned counsel for the assessee submitted that the assessee was denied the benefit of deduction of section 80IB(11A) for the reason that the assessee has not developed transportation facilities. The learned counsel for the assessee submitted that the intention of the introduction of this provision was to enhance the food security and storage facilities. Although the word used in section 80IB(11A) is integrated business of handling storage and transport of foodgrains but the explanatory note issued by CBDT vide Circular No. 14/2001 clearly mentions that section h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orders of the authorities below. 6. We have heard both the sides. The deduction u/s 80IB(11A) is available to undertakings who are deriving profit from the integrated business of handling, storage and transportation of foodgrains. Thus, the facilities of transportation, handling and transportation must exist as an integrated business and the undertaking must derive profit from such business. Transportation by hiring lorry or thela will not generate profit. The benefit must be from integrated business including transportation. The assessee s claim that hiring Riksha will suffice the conditions of integrated business of transportation with handling and storage shall not be sufficient. Rather it will go against the very spirit of the Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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