Deduction U/s 80IB(11)

Save Share

This query is : Resolved

RAKESH GULATI (Querist)

05 October 2007 My client is engaged in the business of processing of rice and wants to avail deduction u/s 80IB(11) on account of storage , handling and transportation of food grains such as rice

Mallidi Ramabrahmananda Reddy

Mallidi Ramabrahmananda Reddy (Expert)

07 October 2007 Your question is applicability of sec 80IB(11A) to rice mill i.e. processing of rice. The section presupposes an integrated business of handling, storage and transportation of food grains. Business of rice mill is dehusking of paddy in to rice, offcourse, it may involve handling, storage and transportation of rice i.e. foodgrain. literally the main activity of rice mill is to process paddy into rice but not for handling, storage and transportation of food grain. The intention of the legilature is not met by rice mill. Hence it is not eligible for deduction u/s80IB(11A).

Ravikumar.G

Ravikumar.G (Expert)

10 October 2007 Thanks for your information sir.

KAAPIL

KAAPIL (Expert)

12 November 2007 Thanks

RAKESH GULATI

RAKESH GULATI (Querist)

03 January 2008 i REQUEST YOU TO PLEASE RECHECK AS SOME COMPANIES ARE CLAIMING DEDUCTION

RAKESH GULATI

RAKESH GULATI (Querist)

04 January 2008 REQUEST YOU TO PLEASE RECHECK AS SOME COMPANIES ARE CLAIMING DEDUCTION

CA Nallathambi Srinivasan

CA Nallathambi Srinivasan (Expert)

09 September 2008 I am also in the view of Mr. Mallidi Ramabrahmananda Reddy. If the company is claiming under this section, it will be questioned by IT in future.