Is Sweet Corn termed as a vegetable for the purpose of allowing deduction u/s 80IB(11A) of the Income Tax Act?

IN THE INCOME TAX APPELLATE TRIBUNAL
HYDERABAD BENCH ‘B', HYDERABAD

BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER
AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER

ITA No. 1578/H/2019
Assessment Year: 2016-17

Tanvi Foods (India) Ltd.
(Hyderabad.
PAN – AACCT 6543J
(Appellant) 

Vs. 

Income-tax Officer,
Ward – 2(4),
Hyderabad.
(Respondent)

Assessee by: Shri Kiran for
Shri S. Rama Rao
Revenue by: Shri Rohit Mujumdar

Date of hearing: 05/04/2021
Date of pronouncement: 10/06/2021

O R D E R

PER L.P. Sahu, AM:

This appeal filed by the assessee for AY 2016-17 is directed against the CIT(A) - 2, Hyderabad’s order,dated 26/08/2019 involving proceedings u/s 143(3) of the Income Tax Act, 1961 ; in short “the Act” on the following grounds of appeal:

“1. The order of the learned Commissioner of Income Tax (Appeals) is erroneous both on facts and in law.

2) The learned Commissioner of Income-tax (Appeals) erred in confirming the action of the Assessing Officer in not allowing the claim of deduction u/ s 80lB (11A) of the l.T. Act inspite of explaining in detail that the appellant is processing sweet corn which is vegetable.

3) The learned Commissioner of Income Tax (Appeals) ought to have allowed the claim of deduction u/s 80lB (11A) of Rs.82,72,150/- as it satisfied all the requirements of Scc.80lB(11A) of the I.T. Act.

4) The learned Commissioner of Income Tax (Appeals) ought to have seen that the Assessing Officer relied on the order of the appellate commissioner instead of considering the claim u/ s 80lB (11 A) on merits.

5) Any other ground or grounds that may be urged at the time of hearing.”

2. Brief facts of the case are that the assessee, engaged in the business of purchase and sale of sweet corn besides preparation and sale of frozen food items like sweet corn samosa, spring rolls etc., filed its return of income for AY 2016-17 on 17/10/2016 declaring total income of Rs. 82,90,150/- and by claiming deduction of Rs. 82,72,150/- u/s 80IB(11A), the income declared by the appellant was at Nil. Further, the assessee company declared deemed total income u/s.115JB at Rs.1,67,07,493.

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