INCOME TAX ACT, 1961

--Deduction under section 80-IB(11A)--Allowability business of transportation, handling and storage of found given--Assessee was appointed as handlines, transportation and storage contractor of FCI. The space for stories the found grain was provided by the FCI as stated by the GM of FCI and not taken on rent on the question asked by assessing officer to him under section 131. The assessing officer held that the assessee was not engaged in integrated business of transportation, handling and storage of food grain and, therefore, assessee was not entitled to deduction under section 80-IB(11A) and thus, rejected assessee's claim. The Commissioner (Appeals) however, allowed assessee's claim. Held: The assessee was simply handling and transporting the goods being food grains and not storing the same and the tender awarded by FCI itself shows these activities the Commissioner (Appeals) was not justified on giving weightage to DcM certificate of FCI and the assessee has not eligible for deduction under section 80-IB(114) as the legislative intent, to constructions of godowns specifically for storing food grains of greater efficiency in the grain management system and minimize post warrant food grain losses, is not satisfied.

Literal interpretation of words 'integrated business of handling, storage and transportation of food grains' will not lead to any absurdity or produce any manifestly unjust result. The Legislative intent is not to encourage transportation or handling of food grains but the Legislative intent is to encourage construction of godowns and warehouses with a view to providing storage of food grains. If one consider the entire combat of the scheme relating to the tax holiday provided by the Legislature, there is no the deductions are available under various provisions when the assessee has contributed something towards the infrastructure development of the country. In the instant case, we do not find any contribution towards the infrastructure by the assessee. The assessee is simply handling and transporting the food grains and storing at the godowns of the FCI which means that the assessee is using the existing infrastructure of the State whereas the main purpose of bringing this provision is construction of godowns specifically for stocking food grains for greater efficiency in the grain management system and minimize post harvest foodgrain losses. The assessee has not done anything towards these facilities. If one look at tender by which the assessee has been awarded this contract. Even the tender participated by the assessee show that the assessee has been awarded the contract for handling and transportation of food grains to the places mentioned therein. The contention of the assessee that section 80IB being a Benevolent provision liberal construction should be applied cannot be accepted because beneficial interpretation applies only where two views are reasonably possible whereas in the instant case, there is no other possible view on the facts of the matter where the law is clear and unambiguous, one cannot act contrary to it with a view to give benefit to the assessee. After considering the entire facts in totality alongwith the Legislative intent, the assessee has not fulfilled the conditions precedent for making him eligible for deduction under section 80IB(11A). The Commissioner (Appeals) has been carried away with the certificate issued by DGM of FCI. The DGM in his wisdom may have issued the certificate without considering the Legislative intent of the scheme, therefore one cannot give much weightage to such certificate. The Commissioner (Appeals) has erred in allowing deduction to the assessee which he is not eligible. Accordingly, the finding of the Commissioner (Appeals) is reversed. [Para 17]