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The Tax Publishers ACIT v Ihsedu Agrochem (P) Ltd. [ITA No. 5057/Mum/2014, dt. 29-4-2016] : 2016 TaxPub(DT) 2216 (Mumbai-Trib) Allowability under section 35AD *Facts:* Assessee was in the business of crushing, manufacturing, exporting castor oil. They constructed a silo for storing the castor seeds on captive basis which was claimed as expenditure under section 35AD. The assessing officer disallowed the same on the premise that silo is not warehouse fitting into the scope of section 35AD and since it was captively used, the benefit cannot be conferred. On appeal Commissioner (Appeals) allowed the same on the logic that there is nothing in section 35AD that requires one to let out and earn and not captively use, the silo in fact is a warehouse for storing agricultural commodities here castor oil seeds. On further appeal by the department: Held in favour of the assessee that the silo was indeed a warehouse and its captive use will not disentitle the assessee to claim the spend under section 35AD.

The Tax Publishers

ACIT v Ihsedu Agrochem (P) Ltd. [ITA No. 5057/Mum/2014, dt. 29-4-2016] : 2016 TaxPub(DT) 2216 (Mumbai-Trib)

Allowability under section 35AD

Facts:

Assessee was in the business of crushing, manufacturing, exporting castor oil. They constructed a silo for storing the castor seeds on captive basis which was claimed as expenditure under section 35AD. The assessing officer disallowed the same on the premise that silo is not warehouse fitting into the scope of section 35AD and since it was captively used, the benefit cannot be conferred. On appeal Commissioner (Appeals) allowed the same on the logic that there is nothing in section 35AD that requires one to let out and earn and not captively use, the silo in fact is a warehouse for storing agricultural commodities here castor oil seeds. On further appeal by the department:

Held in favour of the assessee that the silo was indeed a warehouse and its captive use will not disentitle the assessee to claim the spend under section 35AD.