IN THE ITAT HYDERABAD BENCH ‘A’
Disha Food (P.) Ltd.
V/s.
Assistant Commissioner of Income-tax
IT Appeal No. 1656 (Hyd.) of 2011
[Assessment year 2008-09]
June 22, 2012
ORDER
Saktijit Dey, Judicial Member
This appeal of the assessee is directed against the order dated 22.7.2011 passed by the CIT(A)-II, Hyderabad in ITA No. 0098/CIT(A)-II/2009-10 pertaining to assessment year 2008-09.
2. The assessee has filed the appeal by raising the following grounds:
1. The order of the CIT(A)-II, Hyderabad, in holding that the following receipts do not form part of the income of the industrial undertaking for the purpose of deduction u/s. 80IB of the Income-tax Act, 1961 as unsustainable on facts and in law.
(i) DFRC sales at Rs. 1,27,91,007
(ii) DFIA sales at Rs. 1,34,00,211
(iii) Interest receipts at Rs. 1,64,593
(iv) Conversion charges at Rs. 5,30,06,031
2. The learned CIT(A)-II, Hyderabad ought to have held that all the receipts enumerated at Ground No. 1 were derived from the Industrial Undertaking and therefore were eligible for deduction under section 80IB of the Income-tax Act, 1961.
3. Any other ground that may be urged at the time of hearing of the appeal.
3. Briefly stated the facts are the assessee is engaged in the business of manufacturing and sale of biscuits. Besides its sales in the domestic market, the assessee had also exported its finished product i.e., biscuits outside the country. For the assessment year under dispute the assessee filed its return of income declaring total income of Rs. 90,72,873 after claiming the deduction for an amount of Rs. 38,88,375 u/s 80IB of the Act. In course of assessment proceedings, the Assessing Officer found from the books of the assessee that the total receipt shown in the Profit and Loss A/c. includes other income of Rs. 7,27,91,007 constituted of the following receipts:
