Anand Food And Dairy Products Vs. ITO (Gujarat High Court)
Appellant assessee having fulfilled the requirements for being eligible to deduction under section 80IB(11A) of the Act, the assessing officer held that the assessee is entitled to the benefit there under. Insofar as undertakings deriving profits from the business of processing, preservation and packaging of fruits and vegetables are concerned, the same came to be included for the benefit of deduction under sub-section (11A) of section 80IB of the Act, only with effect from 1-4-2005. Therefore, prior thereto, the appellant was not entitled to the benefit thereof.
In the present case, the appellant had commenced its business with effect from 2nd June, 2001, which is relevant to the assessment year 2002-03. Section 80IB(11A) of the Act provides for the benefit of deduction of profits and gains of an undertaking deriving profit from the business of processing, preservation and packaging of fruits and vegetables for ten consecutive years beginning with the initial assessment year. “Initial assessment year” has been defined under section 80IB(14)(c)(iv) of the Act to mean in the case of an undertaking engaged in the business of processing, preservation and packaging of fruits or vegetables or in the integrated business of handling, storage and transportation of foodgrains, the assessment year relevant to the previous year in which the undertaking begins such business. Thus, in terms of the definition of initial assessment year as defined under section 80IB(14)(c)(iv) of the Act, the initial assessment year is the assessment year relevant to the previous year in which the undertaking begins such business. Therefore, the appellant assessee would be entitled to the benefit of deduction under section 80IB(11A) of the Act with effect from initial assessment year namely, the assessment year relevant to the year in which it commenced its business, that is, assessment year 2002-03.
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