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| The Tax Publishers2020 TaxPub(DT) 0745 (Ahd-Trib) INCOME TAX ACT, 1961
Section 80JJA
There was merit in case of assessee for eligibility of deduction under section 80JJA as regards profits arising from activity of collection and processing of biodegradable waste in order to generate/manufacture biofees biological agents which were essentially nutrition booster derived by a combination of various biological process for use in Animal Healthcare Industry. As per process adopted, unwanted waste was further treated through a series of biological process with the help of biotechnology to produce biofees which were rich in energy values. Biofeeds were stated to help in improving digestion in animals and the biological agents present in biofeeds were stated to be used to replace chemical based antibiotics in animal and poultry. Accordingly, AO was not justified in rejecting claim of assessee under section 80JJA. completely ignoring submission and details furnished by assessee and disallowing entire deduction under section 80JJA without giving any valid reasons and even on imaginative and fanciful factors without calling any further information from assessee.
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Deduction under section 80JJA - Allowability - Profits arising from collection and processing of bio-degradable waste in order to generate biofeeds/biological agents - Disallowance on the ground that no biological agents were manufactured and bio-degradable wastes were not used as raw materials--AO ignored submissions and details furnished by assessee
Assessee-company engaged in manufacturing of starch dextrose and related product and also engaged in trading of maize feed and maize oil claimed deduction under section 80JJA. AO rejected assessee's claim on the ground that no biological agents were manufactured and bio-degradable wastes were not used as raw materials. Assessee made detailed submission on how it was entitled to deduction under section 80JJA which mainly included : Entire process of production of Biofeeds from Biodegradable Waste, Production of Biological Agents, Ingredients purchased for processing and treating waste, details of Machinery used in the production process, Trading and Profit & loss account of Bio Feeds, and details of Purchase and sale made from various parties along with ledger accounts Held: There was merit in case of assessee for eligibility of deduction under section 80JJA as regards profits arising from activity of collection and processing of biodegradable waste in order to generate/manufacture biofeeds biological agents which were essentially nutrition booster derived by a combination of various biological process for use in animal Healthcare Industry. As per process adopted, unwanted waste was further treated through a series of biological process with the help of biotechnology to produce biofees which were rich in energy values. Biofeeds were stated to help in improving digestion in animals and the biological agents present in biofeeds were stated to be used to replace chemical based antibiotics in animal and poultry. Accordingly, AO was not justified in rejecting claim of assessee under section 80JJA. Completely ignoring submission and details furnished by assessee and disallowing entire deduction under section 80JJA without giving any valid reasons and even on imaginative and fanciful factors without calling any further information from assessee.
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