Ridhi Agro Cold Care, Hyderabad, Hyderabad V. ITO, Ward-11(2), Hyderabad, Hyderabad

ITA 1618/Hyd/2016

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 7070 (ITAT-HYDERABAD)
• Duration Of Justice: 4 year(s) 8 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-08-2021
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB-B
• Next Hearing Date: 14-06-2021
• Assessment Year: 2012-2013
• Appeal Filed On: 30-11-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: S RAMA RAO
• Section: 143(3); 11A; 80IB; 13; 12; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD (THROUGH VIRTUAL CONFERENCE) BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER IT A NO S . 1618 /H/20 16, 1922/HYD/2017 & 340/HYD/2018 ASSESSMENT YEAR S : 2 0 12 - 13, 2013 - 14 & 2014 - 15 RIDHI AGRO COLD CARE, HYDERABAD. PAN AA LFR 6169E VS. INCOME - TAX OFFICER, WARD 11 ( 2 ), H YDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY: SHRI S. RAMA RAO REVENUE BY: S HRI ROHIT MUJUMDAR DATE OF HEARING: 1 4 /0 6 /2021 DATE OF PRONOUNCEMENT: 24 /0 8 /2021 O R D E R PER L.P. SAHU, A.M. : TH E S E APPEAL S FILED BY THE ASSESSEE ARE DIRECTED AGAINST CIT(A) - 5 , HYDERABAD S SEPARATE ORDER S FOR AY S 20 12 - 13 TO 2014 - 15 INVOLVING PROCEEDINGS U/S 14 3(3) OF THE INCOME - TAX ACT, 1961; IN SHORT THE ACT . AS SIMILAR ISSUES ARE INVOLVED IN ALL THESE APPEALS, THE SAME WERE CLUBBED AND HEARD TOGETHER AND THEREFORE A COMMON ORDER IS PASSED FOR THE SAKE OF CONVENIENCE. I TA NO. 1618 /HYD /20 16 AND OTHERS RIDHI AGRO COLD CARE, HYD. : - 2 - : 2. COMMON GROUNDS ARE RAISED IN THES E APPEALS THAT THE CIT(A) ERRED IN CONFIRMING THE DISALLOWANCE OF DEDUCTION U/S 80IB(11A) OF THE ACT. TO DISPOSE OF THESE APPEALS, WE REFER TO THE FACTS FROM AY 2012 - 13 BEING ITA NO. 1618/HYD/2016 AND THE DECISION TAKEN IN THIS AY MUTATIS MUTANDIS SHALL APPLY TO OTHER APPEALS. 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE A PARTNERSHIP FIRM CARRYING ON THE BUSINESS OF COLD STORAGE SERVICES, FILED ITS RETURN OF INCOME FOR THE AY 2012 - 13 ADMITTING TOTAL INCOME AT RS. NIL, AFTER CLAIMING DEDUCTION OF RS . 70,14,288/ - U/S 80IB(11A) OF THE ACT. THE AO OBSERVED THAT THE ASSESSEE IS INVOLVED IN RUNNING COLD STORAGE FOR RENTAL PURPOSES AND THAT IT DID NOT CARRY ON INTEGRATED ACTIVITIES OF HANDLING, STORAGE AND TRANSPORTATION OF GOODS, AS PER THE AUDIT REPORT FURNISHED BY THE ASSESSEE IN FORM NO. 10CCB. HE, THEREFORE, DENIED THE ASSESSEES CLAIM OF EXEMPTION U/S 80IB(11A) OF THE ACT. 4. AGGRIEVED BY THE ORDER OF THE AO, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A) AND CONTENDED BEFORE THE CIT(A) THAT TH E ASSESSEE IS ENTITLED FOR DEDUCTION U/S 80IB(11A) AS IT IS IN THE BUSINESS OF PROCESSING, PRESERVATION AND PACKAGING OF FRUITS OR VEGETABLES AND THE ASSESSEE RECEIVED AGRICULTURAL PRODUCE. THE SAME IS PRESERVED AND THE ARE PACKED INTO THE COLD STORAGE PLA NT. I TA NO. 1618 /HYD /20 16 AND OTHERS RIDHI AGRO COLD CARE, HYD. : - 3 - : 5. AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE AND REFERRING THE PROVISIONS OF SECTION 80IB(11A), THE CIT(A) CONFIRMED THE ORDER OF AO BY HOLDING AS UNDER: ' 5.1 NATURE OF BUSINESS OF THE ASSESSEE: THE ASSESSEE HAS CLAIMED DEDUCTION U/S 80IB(11 A) AMOUNTING TO RS. 70,14,288/ - ON BUSINESS OF COLD STORAGE. REGARDING BUSINESS ACTIVITIES UNDERTAKEN BY THE ASSESSEE AND THE ALLOWABILITY OF DEDUCTION, THE ASSESSEE VIDE LETTER DATED 22/01 12015 ADDRESSED TO THE AO, HAS MENTIONED THE NATURE OF ACTIVITIES AS BELOW: 'THE PARTNERSHIP FIRM HAS CONSTRUCTED THE COLD STORAGE UNIT AT SY NO. 255, KANDLAKOI VILLAGE, MEDCHAL MANDAL R.R DT FOR THE PURPOSE OF STORAGE OF AGRICULTURAL PRODUCT, UNDERTAKINGS ENGAGED IN THE BUSINESS OF PROCESSING, PRESERVATION OF AGRICULT URAL PRODUCTS AND RECEIVING RENTAL CHARGES ON THE ABOVE.' THUS, THE ASSESSEE IS LETTING OUT ITS COLD STORAGE FACILITY TO FARMERS/ OTHER PERSONS AND IS CHARGING RENT FOR THE SERVICES RENDERED. IT IS PERTINENT TO MENTION HERE THAT THE ASSESSEE ENTERED INTO AN AGREEMENT WITH M/S SYNGENTA INDIA LIMITED VIDE 'SEEDS STORAGE AGREEMENT' DATED 31 - 03 - 2011, WHICH REVEALED THAT THE ASSESSEE IS RESTRICTED TO PROVIDING COLD STORAGE FACILITY TO OTHERS ON RENTAL BASIS. THE AO IN HIS ORDER EMPHSISED THAT AS PER THE AUD IT REPORT FURNISHED BY THE ASSESSEE IN FORM NO 10CCB, THE ENTITY IS NOT UNDERTAKING ANY INTEGRATED BUSINESS OF HANDLING, STORAGE AND TRANSPORTATION OF FOOD GRAINS AND ALSO NOT UNDERTAKING ANY BUSINESS OF PROCESSING, PRESERVATION AND PACKAGING OF FRUITS OR VEGETABLES (VIDE SI.NO.24(B) AND 24(C) RESPECTIVEL Y 5.2 THE STATUTE : TO BE ELIGIBLE FOR THE DEDUCTION ULS 80LB( 11 A), THE ASSESSEE SHOULD CARRY ON INTEGRATED ACTIVITIES OF PROCESSING, PRESERVATION AND PACKING OF I TA NO. 1618 /HYD /20 16 AND OTHERS RIDHI AGRO COLD CARE, HYD. : - 4 - : AGRICULTURAL PRODUCTS OR THE INTEGRATED BUSINESS OF HANDLING, STORAGE AND TRANSPORTATION OF FOOD GRAINS. I N THE CASE ON HAND, THE BASIC AND THE ONLY ACTIVITY CARRIED OUT BY THE ASSESSEE IS LETTING OUT THE COLD STORAGE ON RENT TO OTHERS AND THIS IS NOT THE ACTIVITY ENVISAGED IN TH E PROVISIONS. SUB SECTION 11A OF SECTION 80LB OF THE IT ACT READ AS UNDER: 'THE AMOUNT OF DEDUCTION IN A CASE OF [AN UNDERTAKING DERIVING PROFIT FROM THE BUSINESS OF PROCESSING, PRESERVATION AND PACKAGING OF FRUITS OR VEGETABLES OR [MEAT AND MEAT PRODUC TS OR POULTRY OR MARINE OR DAIRY PRODUCTS OR(FROM] THE INTEGRATED BUSINESS OF HANDLING, STORAGE AND TRANSPORTATION OF FOOD GRAINS, SHALL BE HUNDRED PERCENT OF THE PROFIT AND GAINS DERIVED FROM SUCH UNDERTAKING FOR FIVE ASSESSMENT YEARS BEGINNING WITH THE I NITIAL ASSESSMENT YEAR AND THEREAFTER, TWENTY - FIVE PERCENT THIRTY PERCENT WHERE THE ASSESSEE IS A COMPANY) OF THE PROFITS AND GAINS DERIVED FROM THE OPERATION OF SUCH BUSINESS IN A MANNER THAT THE TOTAL PERIOD OF DEDUCTION DOES, NOT EXCEED TEN CONSECUTIVE ASSESSMENT YEARS AND SUBJECT TO FULFILLMENT OF THE CONDITION THAT IT BEGINS TO OPERATE SUCH BUSINESS ON OR AFTER THE 1ST DAY OF APRIL,2001 ] [PROVIDED THAT THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO AN UNDERTAKING ENGAGED IN THE BUSINESS OF PROCESS ING, PRESERVATION AND PACKAGING OF MEAT OR MEAT PRODUCTS OR POULTRY OR MARINE OR DAIRY PRODUCTS IF IT BEGINS TO OPERATE SUCH BUSINESS BEFORE THE 1 ST DAY OF APRIL, 2009 ] A BARE PERUSAL OF THE PROVISIONS OF SECTION SHOW THAT DEDUCTION UL S. 80IB( 1 1A) IS A VAILABLE IN THE CASE OF AN UNDERTAKING DERIVING PROFIT FROM THE 'INTEGRATED' BUSINESS OF HANDLING, STORAGE AND TRANSPORTATION OF FOOD GRAINS. THE VITAL WORD USED IN THE SECTION IS 'INTEGRATED'. THE WORD INTEGRATED USED IN THE SECTION CONNOTES, THAT THE BUS INESS OF HANDLING, STORAGE AND TRANSPORTATION OF FOOD GRAINS SHOULD BE CARRIED OUT IN A I TA NO. 1618 /HYD /20 16 AND OTHERS RIDHI AGRO COLD CARE, HYD. : - 5 - : COMBINED MANNER. [ITA NO. 829JPNJ2012 ASSESSMENT YEAR: 2008 - 09 ANURAG RADHESHAM ATTAL FOLLOWED). THUS, GOING BY THE ABOVE PROVISIONS, DEDUCTION U / S 80IB(11A) IS ALLOWAB LE ONLY TO AN UNDERTAKING DERIVING PROFIT FROM THE BUSINESS OF PROCESSING, PRESERVATION AND PACKAGING OF FRUITS OR VEGETABLES OR MEAT PRODUCTS OR MARINE OR DAIRY PRODUCTS OR FROM THE INTEGRATED BUSINESS OF HANDLING STORAGE AND TRANSPORTATION OF FOOD GRAINS . 5.3 IN THE PRESENT CASE IT IS A FACT THAT THE ASSESSEE IS NEITHER HAVING VEHICLES FOR THE TRANSPORTATION BUT THE ASSESSEE IS HAVING COLD STORAGE FACILITIES OF ITS OWN. HOWEVER, THE ASSESSEE'S NATURE OF BUSINESS ACTIVITY IS ONLY COLLECTING RENT FOR THE STORAGE OF FOOD GRAINS . BUT, THE ASSESSE E ARGUED THAT THIS IS NOT A RENTAL INCOME BUT COLD STORAGE CHARGES FOR MAINTAINING THE AGRICULTURAL PRODUCTS. THE ASSESSEE ENTERED THE AGREEMENT WITH THE VARIOUS PARTIES FOR PROVIDING THE SERVICES OF STORING THE SEEDS AT THE REQUIRED TEMP ERATURE. 5.4 DURING THE APPELLATE PROCEEDINGS THE ASSESSE E SUBMITTED A DIFFERENT LINE OF ARGUMENT. IT WAS CONTENDED THAT THE ASSESSE E IS ENTITLED FOR DEDUCTION UNDER THE SECTION DEDUCTION AS IT IS IN THE BUSINESS OF PROCESSING, PRESERVATION AND PACKAGING OF FRUITS OR VEGETABLES. THE ASSESSEE RECEIVED THE AGRICULTURAL PRODUCE. THE SAME IS PRESERVED. THEY ARE PACKED INTO THE COLD STORAGE PLANT. 5.5 THE APPELLANT ALSO RELIED ON THE DECISION IN THE CASE OF COMMISSIONER OF INCOME TAX, CIRCLE - L, NIZAMABAD VS MIS. SARANG HI TECH COLD STORAGE LTD., NIZAMABAD 1533 - 1535/HYD/2011 DATED 11.04.2012. BUT THIS DECISION WAS RENDERED IN CONNECTION WITH DEDUCTION U/S 80IB(11) I.E. DEDUCTION IN CASE OF INDUSTRIAL UNDERTAKING DERIVING PROFIT FROM THE BUSINESS OF SETTING UP AND OPERATING A COLD CHAIN FACILITY FOR AGRICULTURAL PRODUCE. BUT THE SAID SECTION IS NOT APPLICABLE IN THE PRESENT CASE IT WAS SUBJECT TO FULFILMENT OF THE CONDITION I TA NO. 1618 /HYD /20 16 AND OTHERS RIDHI AGRO COLD CARE, HYD. : - 6 - : THAT IT BEGINS TO OPERATE SUCH FACILITY ON OR AFTER THE 1 ST DAY OF APRIL, 1999, BUT BEFORE THE 1ST DAY OF APRIL, 2004. IN THE PRESENT CASE THE APPELLANT IS CLAIMING DEDUCTION U/S 80IB(11A). 5.6 A PLAIN READING OF THE AFOREMENTIONED PROVISI O NS SHOW THAT THE DEDUCTION ~ IS AVAILABLE TO AN UNDERTAKING DERIVING PROF IT FROM THREE BUSINESS ACTIVITIES. I . BUSINESS OF PROCESSING, PRESERVATION AND PACKAGING OF FRUITS OR VEGETABLES; II. BUSINESS OF PROCESSING, PRESERVATION AND PACKAGING OF MEAT AND MEAT PRODUCTS OR POULTRY OR MARINE OR DAIRY PRODUCTS; I II. INTEGRATED BUSINESS OF HANDLING, STORAGE AND TRANSPORTATION OF FOOD GRAINS 5.7 BEFORE THE AO THE APPELLANT CLAIMED DEDUCTION QUOTING 3 RD ACTIVITY. WITH RESPECT TO THE THIRD BUSINESS ACTIVITY THE PROVISION IS AS UNDER: THE AMOUNT OF DEDUCTION IN A CASE OF AN U NDERTAKING DERIVING PROFIT FROM THE INTEGRATED BUSINESS OF HANDLING, STORAGE AND TRANSPORTATION OF FOOD GRAINS SHALL BE .............. THREE CONDITIONS HAVE TO BE FULFILLED AS IT APPEARS FROM A PLAIN READING OF THE AFORESAID PROVISION. FIRST HANDLING, SE COND STORAGE AND THIRD TRANSPORTATION OF FOOD GRAINS. ALL THE THREE CONDITIONS SHOULD BE INTEGRATED WITH EACH OTHER. THE PRESENT CASE ONLY RELATES TO THE SECOND CONDITION I.E. STORAGE. LET US NOW SEE HOW IMPORTANT IS THIS CONDITION. THE MEMORANDUM APPENDED TO THE FINANCIAL BILL BY WHICH SEC. 80LB(11A) WAS AMENDED SHOW THE LEGISLATIVE INTENT IS AS UNDER: I TA NO. 1618 /HYD /20 16 AND OTHERS RIDHI AGRO COLD CARE, HYD. : - 7 - : TAX HOLIDAY FOR UNDERTAKINGS ENGAGED IN THE INTEGRATED HANDLING, STORAGE AND TRANSPORTATION OF FOOD GRAINS. UNDER THE EXISTING PROVISIONS OF SE CION 80I B OF THE INCOME - TAX ACT, A DEDUCTION IS ALLOWED, IN COMPUTING THE TAXABLE INCOME, IN RESPECT OF PROFITS DERIVED FROM A NEW INDUSTRIAL UNDERTAKING OR SHIP OR THE BUSINESS OF A HOTEL. TO ADDRESS THE COUNTRYS BASIC CONCERNS RELATING TO ENHANCED FOOD SECURIT Y AND AGRICULTURAL DEVELOPMENT, UPGRADATION AND MODERNIZATION OF INFRASTRUCTURE FOR STORAGE, HANDLING AND TRANSPORTATION OF FOOD GRAINS IS A CENTRAL CONCERN IN WHICH INTRODUCTION OF MODERN TECHNOLOGY WOULD BRING GREATER EFFICIENCY IN THE GRAIN MANAGEMENT SYSTEM AND MINIMIZE POST HARVEST FOOD GRAIN LOSSES. THE BILL PROPOSES TO ENCOURAGE BUILDING OF STORAGE CAPACITIES, BY PROVIDING THAT ANY UNDERTAKING ENGAGED IN INTEGRATED BULK HANDLING, STORAGE AND TRANSPORTATION WOULD BE ALLOWED HUNDRED PER CENT DEDUCTI ON FOR THE FIRST FIVE YEARS AND THIRTY PER CENT DEDUCTION FOR THE NEXT FIVE YEARS.' THE ENTIRE SCHEME COVERED BY SEC. 80 - IB(11A) RELATES TO SERVICES IN CONNECTION WITH PRESERVATION OF FOOD GRAINS PROMOTED BY THE GOVERNMENT OF INDIA UNDER TFC - 14/99 - VOLUME III, DT. 4TH JULY, 2000 FOLLOWING THE NATIONAL POLICY IN RESPECT OF HANDLING, STORAGE AND TRANSPORTATION OF FOOD GRAINS. IT RELATES TO BOTH CONSTRUCTION CONTRACT AND THE PRESERVATION CONTRACTS ARISING OUT OF A SCHEME SPONSORED BY THE GOVERNMENT OF INDIA ADMINISTERED BY AN AGENCY OF THE STATE GOVERNMENT. IT IS PART OF THE CENTRAL SCHEME UND ER THE IMPLEMENTATION OF FOOD CORPORATION OF INDIA IN PURSUANCE OF THE NATIONAL POLICY FOR HANDLING, STORAGE AND TRANSPORTATION OF FOOD GRAINS. 5.8 THE DISPUTE IN THE PRESENT CASE RELATES TO THE FIRST AND THIRD CONDITIONS, I.E., HANDLING AND TRANSPORTATI ON. THE AO AFTER EXAMINING THE SEED STORAGE AGREEMENT I TA NO. 1618 /HYD /20 16 AND OTHERS RIDHI AGRO COLD CARE, HYD. : - 8 - : DATED 31 - 03 - 2011 ENTERED BY AND BETWEEN THE ASSESSEE AND M/S SYNGENTA INDIA LIMITED (A SEED COMPANY), WHICH WAS FURNISHED DURING THE COURSE OF PROCEEDINGS, FOUND THAT THE ASSESSEE AGREED FOR THE 'SERVIC ES' WHICH MEAN THE SERVICES OF STORING PRODUCTS AT ITS COLD STORAGE FACILITY. CLAUSE 3 OF THE SAID AGREEMENT EVIDENCES THAT SYNGENTA SHALL PACK THE PRODUCTS IN BAGS TO BE RED AT THE FACILITY AND DELIVER THE SAME AT THE FACILITY AT ITS COST. CLAUSE 8 REFERS TO THE AMOUNT PAYABLE AND CLAUSE 10 AND 10(V) SHOW THAT SYNGENTA SHALL BE LIABLE F O R ANY S HO RTAGE OR DAMAGE UPTO POINT OF DELIVERY OF PRODUCTS AT THE FACILITY AND TO HOLD THE ASSESSEE A TRUST FOR SYNGMTA AND BE A BAILEE FOR THE V CUSTODY OF THE PRODUCTS DELIVERED AT THE FACILITY FROM TIME TO TIME. FROM THE ABOVE CONTENTS OF THE AGREEMENT, IT IS INFERRED THAT THE ASSESSEE IS NOT INVOLVED IN THE FIRST ACTIVITY OF HANDLING. M / S SYNGENTA, WHO CONTRIBUTED ALMOST 80% OF THE GROSS RECEIPTS OF THE ASSESSEE FOR THE YEAR, WILL BRING THE SEEDS AT ITS OWN COST TO THE COLD STORAGE FACILITY OF THE ASSESSEE AND THE ASSESSEE IS ONLY LIABLE FOR UNLOADING THE GOODS BY COLLECTING HAMALI CHARGES FROM SYNGENTA AND STORING THE CONTENTS / SEEDS. THE THIRD ACTIVITY OF TRANSPORTAT ION ALSO IS NOT CARRIED OUT BY THE ASSESSEE. APART FROM THE CONTENTS OF THE AGREEMENT, THE PROFIT & LOSS ACCOUNT DOES NOT INDICATE THAT THE ASSESSEE INCURRED EXPENDITURE TOWARDS HANDLING AND TRANSPORTATION. FURTHER, THE AO NOTICED THAT THE ASSESSEE IS LIAB LE FOR LOADING AND UNLOADING OF THE GOODS TO BE STORED, THE BASIC EXPENDITURE TO BE INCURRED TOWARDS HAMALI/LABOUR CHARGES IS NOT EXPLICITLY DEBITED, EXCEPT AN EXPENDITURE OF RS.6,32,239 / - TOWARDS SALARIES. APART FROM THIS HEAD OF EXPENDITURE, NO OTHER EXP ENDITURE WORTH MENTIONING WAS DEBITED TOWARDS THE ACTIVITIES OF HANDLING AND TRANSPORTATION. FROM ABOVE DETAILS AND DISCUSSION, IT IS OBSERVED THAT THE ASSESSEE WAS INVOLVED IN RUNNING A COLD STORAGE FOR RENT PURPOSE AND DID NOT CARRY OUT THE INTEGRATED ACTIVITIES OF HANDLING, STORAGE AND TRANSPORTATION OF I TA NO. 1618 /HYD /20 16 AND OTHERS RIDHI AGRO COLD CARE, HYD. : - 9 - : GOODS TO MAKE ITS PROFIT ELIGIBLE FOR DEDUCTION U/S 80IB(11A) (ITA NO. 829/PN/2012 ANURAG RADHESHAM ATTAL FOLLOWED]. 5.9. BUT, DURING THE APPELLATE PROCEEDINGS, THE ASSESSEE CHANGED ITS CONTENTION AND HAS CLAIMED DEDUCTION U/S 80IB(11A) ON THE GROUND THAT THE ASSESSEE WAS ALSO DERIVING PROFIT FROM THE BUSINESS OF PROCESSING, PRESERVING AND PACKING OF FRUITS AND VEGETABLES. AND IT WAS CLAIMED THAT IT IS ENTITLED TO DEDUCTION U/S 80IB(11A) OF THE ACT WHI CH WAS DENIED BY THE AO ON THE GROUND THAT THE ASSESSEE HAS ONLY DERIVING INCOME FROM COLD STORAGE ACTIVITIES. IT WAS ARGUED THAT THE ASSESSEE RECEIVED THE AGRICULTURAL PRODUCE, THE SAME IS PRESERVED. AND THEY ARE PACKED INTO THE COLD STORAGE PLANT. 5. 10 THE AR COMPLETELY MISINTERPRETED THE PROVISION. SECTION 8 0 IB (L1A) TARGETS FOR RELIEF FOR THE BUSINESS OF PROCESSING PRESERVATION AND PACKAGING OF FRUITS AND VEGETABLES AS NEWLY ADDED FROM A.Y. 2005 - 06, WHILE THE RELIEF HAS BEEN AVAILABLE W.E.F.1.4.2002 FOR ALL UNDERTAKINGS, WHICH HAVE BEGUN TO OPERATE ON OR AFTER 1 ST APRIL, 2001 FOR ANY INCOME FROM 'THE INTEGRATED BUSINESS OF HANDLING, STORAGE AND TRANSPORTATION OF FOOD GRAINS' USING THE VERY LANGUAGE OF THE POLICY. THE RELIEF IS FOR PROCESSING PRESERVATION AND PACKAGING OF FRUITS AND VEGETABLES. THE APPELLANT ADMITTEDLY IS NOT INVOLVED IN PROCESSING OF AGRICULTURAL PRODUCE. IT WAS STATED THAT IT ONLY RECEIVES THE AGRICULTURAL PRODUCE. IT IS ALSO NOT DEALING WITH FRUITS AND VEGETABLES. IN THE PROVISION ACTIVITY OF PROCESSING, PRESERVATION AND PACKAGING HAS BEEN INCLUDED WITH REFERENCE TO FRUITS AND VEGETABLES ONLY AS WELL AS MEAT AND MEAT PRODUCTS. BUT AS FAR AS FOOD GRAINS ARE CONCERNE D, SECTION HAS BEEN WORDED AS 'FROM THE INTEGRATED BUSINESS OF STORAGE AND HANDLING AND TRANSPORTATION OF FOOD GRAINS.' THUS BOTH PROCESSING AND PACKAGING ARE ESSENTIAL REQUIREMENTS OF THE PROVISION AND THE ASSESSE E I TA NO. 1618 /HYD /20 16 AND OTHERS RIDHI AGRO COLD CARE, HYD. : - 10 - : IS NOT ENGAGED IN THESE FUNCTIONS. I HAV E MENTIONED IN EARLIER PARAGRAPHS THAT MIS SYNGENTA, CONTRIBUTED ALMOST 80% OF THE GROSS RECEIPTS OF THE ASSESSEE FOR THE YEAR. AS PER AGREEMENT THE ASSESSE E PROVIDES COLD STORAGE FACILITY FOR PRESERVATION. THUS THE ASSESSE E IS NOT ENGAGED IN THE ACTIVITY OF PROCESSING, PRESERVATION AND PACKAGING OF FRUITS AND VEGETABLES. THUS, I HOLD THAT THE ASSESSEE IS NOT ENTITLED FOR DEDUCTION U/S 80IB (11A). 6. AGGRIEVED BY THE ORDER OF CIT(A), THE ASSESSEE IS IN APPEAL BEFORE THE ITAT. 7. BEFORE US, THE LD. AR RE ITERATED THE SUBMISSIONS MADE BEFORE THE LOWER AUTHORITIES AND ALSO RELIED ON THE WRITTEN SUBMISSIONS FILED BEFORE US IN SUPPORT OF ASSESSEES CASE. , WHICH ARE PLACED ON RECORD. IN THE WRITTEN SUBMISSIONS, THE LD. COUNSEL FOR THE ASSESSEE STATED AS UNDER: THE APPELLANT BRINGS TO THE KIND NOTICE OF THE HON 'BLE BENCH THAT WHILE ARGUING THE MATTER, THE COUNSEL OF THE ASSESSEE MENTIONED THAT GOODS STORED IN THE COLD STORE ARE 'VEGETABLES'. IT IS SUBMITTED THAT THE GOODS STORED ARE 'SEEDS' OF VARIOUS AGRICULT URAL PRODUCE. I EXPRESS SORRY FOR THE SAME. COPIES OF THE AGREEMENTS SUBMITTED AT PAGE NO. 34 TO 42 OF THE ASSESSEE'S PAPER BOOK. FOR THE ASST. YEAR 2012 - 13 IN ITA NO.1618JHYDJ2016 WHICH CLEARLY INDICATES THAT THE GOODS STORED ARE 'SEEDS'. THE PROCESS INVO LVED IN ACCEPTING THE GOODS FOR STORAGE, THEIR PRESERVATION IN COLD STORE IS EXPLAINED HEREUNDER: A) THE GOODS ARE RECEIVED AT THE GATE THROUGH TRANSPORT VEHICLES .AND FROM THERE THEY ARE BROUGHT INSIDE THE PREMISES, B) THE HAMALI LABOURS MANUALLY UNLO AD THE GOODS ON THE PLATFORM. . THE GOODS ARE KEPT FOR SOME TIME ON THE I TA NO. 1618 /HYD /20 16 AND OTHERS RIDHI AGRO COLD CARE, HYD. : - 11 - : SAID PLATFORM TO BRING DOWN GOODS TO NORMAL TEMPERATURE. IT ALSO ENABLES ANY. OTHER INGREDIENTS TO BE REMOVED. C) THE GOODS ARE SEGREGATED QUALITY - WISE AND ITEM - WISE ON THE PLATFORM ITSELF. AT THAT STAGE THE GOODS ARE RE - PACKED SO AS TO KEEP THE GOODS IN THE COLD STORE IN THE APPROPRIATE FLOOR. D) THE GOODS ARE LOADED TO TROLLEYS BY MACHINES AND' ARE CARRIED TO THE RESPECTIVE FLOOR OF THE COLD STORE WITH THE HELP OF LIFT. E) THE GOODS ARE TAKEN TO EACH OF THE FLOOR AND IS STORED BASED ON THE VARIETY AND QUALITY. F) THE GOODS ARE PRESERVED IN COLD, STORE. FOR THIS PURPOSE, THE APPELLANT DEPLOYS 2 NOS. KC2 COMPRESSORS RUNNING THROUGHOUT WITH 50 HP MOTORS ALONGWITH CONDENSER UNITS WHICH ARE RUN BY AMMONIA GAS. THE MACHINERY PROVIDES THE REQUIRED TEMPERATURE DEPENDING UPON THE TYPE OF GOODS STORE D INSIDE THE COLD STORE CHAMBER. THE TEMPERATURE LEVEL IS ADJUSTED FOR EVERY FLOOR AS PER THE REQUIREMENT OF THE GOODS STORED. G) BESIDES, THE APPELLANT HAS TO MAINTAIN THE RELATIVE HUMIDITY AS REQUIRED.' FOR THIS PURPOSE, TWO NUMBERS OF DE - HUMIDIFIER MA CHINES ARE RUN WITH THE HELP OF BOILERS INSTALLED. H) THE APPELLANT HAS PROVIDED 125KG GENERATOR FOR POWER BACK UP IN CASE OF POWER FAILURES AND TO ENSURE ROUND THE CLOCK OPERATION OF THE COLD STORE. I) DURING THE COURSE OF STORAGE, THE ASSESSE E UNDER TAKES PERIODICAL FUMIGATION OF THE STOCKS TO MAKE THE STOCKS INSECT FREE. I TA NO. 1618 /HYD /20 16 AND OTHERS RIDHI AGRO COLD CARE, HYD. : - 12 - : J) AT THE TIME OF DELIVERY OF THE GOODS, THE GOODS ARE . BROUGHT OUT OF THE COLD STORE AND KEPT ON THE PLATFORMS FOR ADJUSTING WITH THE OUTSIDE TEMPERATURE AND THEN THEY ARE LOADED INTO TRANSPORT VEHICLES FOR CARRYING OUTSIDE THE PREMISES. 2. IT IS SUBMITTED THAT THE GOODS ARE HANDLED AT EVERY STAGE OF OPERATION. AS PER THE PROVISIONS OF SEC.80IB( 11 A) THE APPELLANT IS ENTITLED FOR DEDUCTION IN CASE IT IS ENGAGED IN THE INTEGRATED ACTIVITY OF HANDLING, . STORAGE AND TRANSPORTATION OF FOOD GRAINS. IN SO FAR AS THE SEEDS OR FOOD GRAINS ARE CONCERNED, THE PROCESSING IS NOT REQUIRED. THE EXTRACT OF PROVISION IS APPENDED HEREUNDER: '80IB( 11 A) - THE AMOUNT OF DEDUCTION IN A CASE OF AN UN DERTAKING DERIVING PROFIT FROM THE BUSINESS OF PROCESSING, PRESERVATION AND PACKAGING OF FRUITS OR VEGETABLES OR MEAT AND MEAT PRODUCTS OR POULTRY OR MARINE OR DAIRY PRODUCTS OR FROM THE INTEGRATED BUSINESS OF HANDLING, STORAGE AND TRANSPORTATION OF FOOD G RAINS, SHALL BE HUNDRED PERCENT OF THE PROFITS AND GAINS DERIVED FROM SUCH UNDERTAKING ' 3. IN VIEW OF THE ABOVE, IT IS SUBMITTED THAT THE PROCESSING OF THE GOODS IS NOT REQUIRED IN THE CASE OF FOOD GRAINS WHICH WAS UNDERTAKEN BY THE ASSESSE E . THE' APPEL LANT SUBMITS THAT IT FULFILLED THE CONDITIONS MENTIONED IN SECTION 80IB(11A) OF THE LT. ACT AND IS ENTITLED FOR DEDUCTION U / S 80IB(11A) OF THE LT. ACT. THE ASSESSE E IS RELYING ON THE FOLLOWING DECISIONS: I) THE DECISION OF THE HON'BLE ITAT, HYDERABAD BEN CH - A IN ITA NO.1533 TO 1535JHYDJ2011 IN THE CASE OF ACIT VS SARANG HI TECH COLD STORAGE PVT. LTD .. II) THE DECISION OF THE HON'BLE ITAT, HYDERABAD BENCH - B IN ITA NO.1045 JHYDJ2010 IN THE CASE OF DCIT VS SARANG HI TECH COLD STORAGE PVT . . LTD .. I TA NO. 1618 /HYD /20 16 AND OTHERS RIDHI AGRO COLD CARE, HYD. : - 13 - : (COPIES OF THE ABOVE SAID TWO DECISIONS ARE PART OF THE PAPER BOOK FILED BY THE ASSESSEE FOR THEAY 2012 - 13 IN ITA NO.1618JHYDJ2016 AT PAGES NO.15 TO 24) III) 'ORDER OF HIGH COURT OF JUDICATURE FOR RAJASTHAN IN THE CASE OF CIT VS MEFCO ENTERPRISES PVT. LT D, IV) ORDER OF THE HON'BLE ITAT, HYDERABAD BENCH - A IN ITA NO.57 JHYDJ2011 IN THE CASE OFT. DEVENDER REDDY. V) THE ORDER OF THE HON'BLE ITAT, HYDERABAD IN THE CASE OF A.P. STATE WAREHOUSING CORPORATION REPORTED IN 150 LTD 485). (COPIES OF THE ABOVE S AID THREE DECISIONS ARE PART OF THE PAPER BOOK FILED BY THE ASSESSE FOR THE DECISIONS RELIED UPON IN ITA NO.1618JHYDJ2016 & 340JHYDJ2018 AT PAGES NO.1 TO 20) IN VIEW OF THE ABOVE, THE ASSESSEE REQUESTS THE HONBLE ITAT TO KINDLY ALLOW THE APPEALS AS PRAY ED FOR. 8. THE LD. DR, ON THE OTHER HAND, RELIED ON THE ORDERS OF AUTHORITIES BELOW AND SUBMITTED THAT THE ASSESSEE IS OPERATING MERELY COLD STORAGE PLANT AND IT IS CLEAR FROM THE FINDINGS OF THE LOWER AUTHORITIES AS WELL AS FROM FINANCIAL STATEMENTS, NO HAMALI AND TRANSPORTATION CHARGES WERE INCURRED BY THE ASSESSEE. HE SUBMITTED THAT THE ASSESSEE IS CARRYING ON THE BUSINESS OF STORAGE OF SEEDS WHICH IS CLEAR FROM THE AGREEMENT AND AS PER THE AGREEMENT, THE OWNERS OF GOODS ARE INCURRING THE TRANSPORTATION EXPENSES UP TO THE STORAGE AND THE STORAGE IS ONLY FOR SEEDS . 9. WE HAVE CONSIDERED TH E RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD AS WELL AS GONE THROUGH THE I TA NO. 1618 /HYD /20 16 AND OTHERS RIDHI AGRO COLD CARE, HYD. : - 14 - : ORDERS OF REVENUE AUTHORITIES. THE PROVISIONS OF SECTION 80IB(11A) ARE AS UNDER: (11A) THE AMOUNT OF DEDUCTION IN A CASE OF AN UNDERTAKING DERIVING PROFIT FROM THE INTEGRAT ED BUSINESS OF HANDLING, STORAGE AND TRANSPORTATION OF FOOD GRAINS, SHALL BE HUNDRED PER CENT OF THE PROFITS AND GAINS DERIVED FROM SUCH UNDERTAKING FOR FIVE ASSESSMENT YEARS BEGINNING WITH THE INITIAL ASSESSMENT YEAR AND THEREAFTER, TWENTY - FIVE PER CENT ( OR THIRTY PER CENT WHERE THE ASSESSEE IS A COMPANY) OF THE PROFITS AND GAINS DERIVED FROM THE OPERATION OF SUCH BUSINESS IN A MANNER THAT THE TOTAL PERIOD OF DEDUCTION DOES NOT EXCEED TEN CONSECUTIVE ASSESSMENT YEARS AND SUBJECT TO FULFILMENT OF THE CONDIT ION THAT IT BEGINS TO OPERATE SUCH BUSINESS ON OR AFTER THE 1ST DAY OF APRIL, 2001. 9 .1 A PLAIN READING OF THE AFOREMENTIONED PROVISIONS SHOW THAT THE DEDUCTION IS AVAILABLE TO AN UNDERTAKING DERIVING PROFIT FROM THREE BUSINESS ACTIVITIES , AS UNDER: I. BUSINESS OF PROCESSING, PRESERVATION AND PACKAGING OF FRUITS OR VEGETABLES; II. BUSINESS OF PROCESSING, PRESERVATION AND PACKAGING OF MEAT AND MEAT PRODUCTS OR POULTRY OR MARINE OR DAIRY PRODUCTS; III. INTEGRATED BUSINESS OF HANDLING, STORAGE AND TRANSPORTATION OF FOOD GRAINS . 9 .2 BEFORE THE AO THE APPELLANT CLAIMED DEDUCTION QUOTING 3 RD ACTIVITY. WITH RESPECT TO THE THIRD BUSINESS ACTIVITY THE PROVISION IS AS UNDER: THREE CONDITIONS HAVE TO B E FULFILLED AS IT APPEARS FROM A PLAIN READING OF THE AFORESAID PROVISION. FIRST HANDLING, SECOND STORAGE AND THIRD TRANSPORTATION OF FOOD GRAINS. ALL THE THREE CONDITIONS SHOULD BE INTEGRATED WITH EACH OTHER. THE PRESENT CASE ONLY RELATES TO THE SECOND CO NDITION I.E. STORAGE. LET US NOW SEE HOW IMPORTANT IS THIS CONDITION. THE MEMORANDUM I TA NO. 1618 /HYD /20 16 AND OTHERS RIDHI AGRO COLD CARE, HYD. : - 15 - : APPENDED TO THE FINANCIAL BILL BY WHICH SEC. 80IB(11A) WAS AMENDED SHOW THE LEGISLATIVE INTENT IS AS UNDER: TAX HOLIDAY FOR UNDERTAKINGS ENGAGED IN THE INTEGRATED HANDLI NG, STORAGE AND TRANSPORTATION OF FOOD GRAINS. UNDER THE EXISTING PROVISIONS OF SEC. 80 - IB OF THE INCOME - TAX ACT, A DEDUCTION IS ALLOWED, IN COMPUTING THE TAXABLE INCOME, IN RESPECT OF PROFITS DERIVED FROM A NEW INDUSTRIAL UNDERTAKING OR A SHIP OR THE O R THE BUSINESS OF A HOTEL. TO ADDRESS THE COUNTRY'S BASIC CONCERNS RELATING TO ENHANCED FOOD SECURITY AND AGRICULTURAL DEVELOPMENT, UPGRADATION AND MODERNIZATION OF INFRASTRUCTURE FOR STORAGE, HANDLING AND TRANSPORTATION OF FOOD GRAINS IS A CENTRAL CONCE RN IN WHICH INTRODUCTION OF MODERN TECHNOLOGY WOULD BRING GREATER EFFICIENCY IN THE GRAIN MANAGEMENT SYSTEM AND MINIMIZE POST HARVEST FOOD GRAIN LOSSES. THE BILL PROPOSES TO ENCOURAGE BUILDING OF STORAGE CAPACITIES, BY PROVIDING THAT ANY UNDERTAKING ENGA GED IN INTEGRATED BULK HANDLING, STORAGE AND TRANSPORTATION WOULD BE ALLOWED HUNDRED PER CENT DEDUCTION FOR THE FIRST FIVE YEARS AND THIRTY PER CENT DEDUCTION FOR THE NEXT FIVE YEARS.' 9 .3 ON PERUSAL OF THE WRITTEN SUBMISSIONS AND ENTIRE DOCUMENTS AVAILABLE BEFORE US AS WELL AS FROM THE FINANCIAL STATEMENTS, WE DO NOT FIND ANY ENTRY TOWARDS TRANSPORTATION EXPENSES DEBITED BY THE ASSESSEE IN THE P&L ACCOUNT. IF THE ASSESSEE HAS PAID TO THIRD PARTIES TOWARDS TR ANSPORTATION EXPENSES, IT MUST HAVE BEEN REFLECTED IN ITS BOOKS OF ACCOUNT, BUT, THERE IS NO SUCH EXPENSES DEBITED BY THE ASSESSEE IN P&L ACCOUNT. IF THE ASSESSEE HAS UNDERTAKEN TRANSPORTATION OF FOOD GRAINS, THERE MUST BE VEHICLE I TA NO. 1618 /HYD /20 16 AND OTHERS RIDHI AGRO COLD CARE, HYD. : - 16 - : EXPENSES DEBITED IN THE A CCOUNT, BUT, NO SUCH EXPENSES WERE FOUND FROM THE FINANCIAL EXPENSES. THE SUBMISSION OF THE ASSESSEE WITH REGARD TO MOVEMENT OF GOODS FROM ONE PLACE TO OTHER PLACES IS A NORMAL ACTIVITY WITHIN THE COLD STORAGE AREA FOR KEEPING SEEDS AT AN APPROPRIATE PLACE INSIDE THE COLD STORAGE . THEREFORE, THERE IS NO SUBSTANCE IN THE SUBMISSION OF THE LD. AR THAT EXPENDITURE TOWARDS TRANSPORTATION HAS BEEN INCURRED . IN THE FINANCIAL STATEMENTS THERE IS NO EXPENDITURE IS SHOWN UNDER THE HEAD PETROL, DIESEL, OIL AND LUBRI CATIONS , MAINTENANCE, OR VEHICLE HIRE CHARGES, ETC., WHICH SHOWS THAT THE ASSESSEE HAS NOT INCURRED AN EXPENDITURE TOWARDS PETROL, DIESEL ETC. FOR TRANSPORTATION OF FOOD GRAINS . 9.4 ON FURTHER PERUSAL OF THE P&L ACCOUNT FOR AY 2012 - 13, NO HAMALI CHARGES WERE DEBITED IN T O P&L ACCOUNT WHEREAS THE ASSESSEE HAS SUBMITTED PAPER BOOK WITH REGARD TO WAGES (HANDLING, PACKAGING) FOR PAYMENT TO HAMALIS FOR HANDLING OF GOODS OF RS. 1 0, 07,461/ - , AND CORRESPONDING CREDIT ENTRY ALSO MADE OF RS. 10,85,100/ - WHICH HAS BEEN IN DIFFERENT COMPANYS NAME, WHICH IS PLACED AT PAGES 25 TO 31 OF PAPER BOOK, BUT, THE SAME WAS NOT REFLECTED IN THE P&L ACCOUNT OF THE ASSESSEE. FURTHER, ON PERUSAL OF TAX AUDIT RE PORT, THE NATURE OF THE BUSINESS ACTIVITY OF THE ASSESSEE HAS BEEN SHOWN AS COLD STORAGE SERVICES AND IN FINANCIAL STATEMENTS ALSO AS WELL AS AS PER THE ORDERS OF LOWER AUTHORITIES, FORM 10CCB ALSO DOES NOT REFLECT THAT THE I TA NO. 1618 /HYD /20 16 AND OTHERS RIDHI AGRO COLD CARE, HYD. : - 17 - : ASSESSEE IS CARRYING OR ENGAGED IN THE BUSINESS OF HANDLING, STORAGE AND TRANSPORTATION OF FOOD GRAINS AND ALSO NOT TAKING OF ANY BUSINESS OF PROCESSING AND PACKAGING OF GOODS OR VEGETABLES VIDE SL. NOS. 24(B) AND 24(C) RESPECTIVELY. NO DOUBT, THE ASSESSEE IS OPERATING COLD STORAGE, B UT, OTHER INGREDIENTS FOR ELIGIBILITY OF DEDUCTION IS NOT SATISFIED. THE ASSESSEE FAILED TO ESTABLISH THAT IT HAD INCURRED EXPENSES TOWARDS HAMALI CHARGES AND TRANSPORTATION OF FOOD GRAINS. THE CASE LAW RELIED UPON BY THE LD. AR OF THE ASSESSEE ARE DISTING UISHABLE ON FACTS TO THE CASE OF THE ASSESSEE. RES - JUDICATA DOES NOT APPLY IN THIS CASE. THE LD. AR ALSO FAILED TO PRODUCE EARLIER AYS ORDERS PASSED U/S 143(3) OF THE ACT TO SHOW THAT ANY DEDUCTION WAS GRANTED U/S 80IB(11A) OF THE ACT. THE CASE LAW RELIED UPON BY THE LD. COUNSEL FOR THE ASSESSEE IN HIS WRITTEN SUBMISSIONS QUOTED SUPRA, ARE NOT APPLICABLE TO THE FACTS OF THE CASE OF THE ASSESSEE AS THEY ARE DISTINGUISHABLE ON FACTS. 9 . 5 IN VIEW OF THE ABOVE OBSERVATIONS, WE DO NOT FIND ANY INFIRMITY IN TH E ORDER OF THE CIT(A) WHEREIN HE HELD THAT THE ASSESSEE IS NOT ENTITLED FOR DEDUCTION U/S 80IB (11A) BY OBSERVING AS UNDER: 5.10 THE AR COMPLETELY MISINTERPRETED THE PROVISION. SECTION 80 - IB (11A) TARGETS FOR RELIEF FOR THE BUSINESS OF PROCESSING PRESERVATION AND PACKAGING OF FRUITS AND VEGETABLES AS NEWLY ADDED FROM A.Y. 2005 - 06, WHILE THE RELIEF HAS BEEN AVAILABLE W.E.F. 1.4.2002 FOR ALL UNDERTAKINGS, WHICH HAVE BEGUN TO OPERATE ON OR AFTER 1ST APRIL, 2001 FOR ANY INCOME FROM 'THE INTEGRATED I TA NO. 1618 /HYD /20 16 AND OTHERS RIDHI AGRO COLD CARE, HYD. : - 18 - : BUSINESS OF HANDLING, STORAGE AND TRANSPORTATION OF FOOD GRAINS' USING THE VERY LANGUAGE OF THE POLICY. THE RELIEF IS FOR PROCESSING PRESERVATION AND PACKAGING OF FRUITS AND VEGETABLES. THE APPELLAN T ADMITTEDLY IS NOT INVOLVED IN PROCESSING OF AGRICULTURAL PRODUCE. IT WAS STATED THAT IT ONLY RECEIVES THE AGRICULTURAL PRODUCE. IT IS ALSO NOT DEALING WITH FRUITS AND VEGETABLES. IN THE PROVISION ACTIVITY OF PROCESSING, PRESERVATION AND PACKAGING HAS BEE N INCLUDED WITH REFERENCE TO FRUITS AND VEGETABLES ONLY AS WELL AS MEAT AND MEAT PRODUCTS. BUT AS FAR AS FOOD GRAINS ARE CONCERNED, SECTION HAS BEEN WORDED AS 'FROM THE INTEGRATED BUSINESS OF STORAGE AND HANDLING AND TRANSPORTATION OF FOOD GRAINS.' THUS BO TH PROCESSING AND PACKAGING ARE ESSENTIAL REQUIREMENTS OF THE PROVISION AND THE ASSESSE E IS NOT ENGAGED IN THESE FUNCTIONS. I HAVE MENTIONED IN EARLIER PARAGRAPHS THAT M/ S SYNGENTA, CONTRIBUTED ALMOST 80% OF THE GROSS RECEIPTS OF THE ASSESSEE FOR THE YEAR . AS PER AGREEMENT THE ASSESSE E PROVIDES COLD STORAGE FACILITY FOR PRESERVATION. THUS , THE ASSESSE E IS NOT ENGAGED IN THE ACTIVITY OF PROCESSING, PRESERVATION AND PACKAGING OF FRUITS AND VEGETABLES. THUS, I HOLD THAT THE ASSESSEE IS NOT ENTITLED FOR DEDUCT ION U/S 80IB(11A) OF THE ACT. 9 . 6 . ACCORDINGLY, WE UPHOLD THE ORDER OF THE CIT(A) AND DISMISS THE GROUNDS RAISED BY THE ASSESSEE ON THIS ISSUE. 10 . IN AYS 2013 - 14 & 2014 - 15, THOUGHT THE ASSESSEE HAS DEBITED THE AMOUNTS TOWARDS HAMALI CHARGES IN P&L ACCOUNT OF RS. 2,91,151.50 / - AND RS. 4,10,191/ - RESPECTIVELY, SINCE WE HAVE UPHELD THE ORDER OF CIT(A) IN AY 2012 - 13 WHEN THE ASSESSEE FAILED TO FULFIL THE CONDITIONS LAID DOWN UNDER THE PROVISIONS OF SECTION 80IB(11A) OF THE ACT, WE UPHOLD THE ORDERS OF CIT(A) IN AYS 2013 - 14 AND I TA NO. 1618 /HYD /20 16 AND OTHERS RIDHI AGRO COLD CARE, HYD. : - 19 - : 2014 - 15 RESPECTIVELY AS THE FACTS AND GROUNDS RAISED IN THESE APPEALS ARE MATERIALLY IDENTICAL TO THAT OF AY 2012 - 13. 11 . IN THE RESULT, ALL THE APPEALS UNDER CONSIDERATION ARE DISMISSED. PRONOUNCED IN THE OPEN COURT ON 24 TH AUGUST , 2021 . SD/ - SD/ - ( S.S. GODARA ) (L . P . SAHU) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDE RABAD, DATED : 24 TH AUGUST , 20 2 1 . K V C OPY TO : 1 RIDHI AGRO COLD CARE, C/O SRI S. RAMA RAO, ADVOCATE, FLAT NO. 102, SHRIYAS ELEGANCE, 3 - 6 - 643, STREET NO. 9, HIMAYATNAGAR, HYDERABAD 500 029. 2 ITO, WARD 11 ( 2 ), HYDERABAD . 3 C I T(A) 5 , HYDERABAD. 4 PR. CIT - 5 , HYDERABAD. 5 ITAT, DR, HYDERABAD. 6 GUARD FILE. I TA NO. 1618 /HYD /20 16 AND OTHERS RIDHI AGRO COLD CARE, HYD. : - 20 - : S.NO. DETAILS DATE 1 DRAFT DICTATED ON 2 DRAFT PLACED BEFORE AUTHOR 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 5 APPROVED DRAFT COMES TO THE SR. PS/PS 6 KEPT FOR PRONOUNCEMENT 7 FILE SENT TO BENCH CLERK 8 DATE ON WHICH THE FILE GOES TO HEAD CLERK 9 DATE ON WHICH FILE GOES TO A.R. 10 DATE OF DISPATCH OF ORDER