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2018 (5) TMI 1979 - AT - Income TaxClaim of deduction otherwise than by a revised return - Grounds raised before the appellate authority for the first time without raising the same before the AO by filing the revised return of income during the assessment proceedings - Characterization of income - subsidy received by way of sales tax remission under the West Bengal Incentive Scheme 1999 for setting up an industrial unit - revenue or capital receipt - HELD THAT:- Hon’ble Supreme Court in National Thermal Power Co.Ltd. vs CIT [1996 (12) TMI 7 - SUPREME COURT] , Jute Corporation of India [1990 (9) TMI 6 - SUPREME COURT] both passed by the Hon’ble Supreme Court as well as order passed by the Hon’ble Calcutta High Court in the case of Mayank Poddar HUF [2003 (2) TMI 45 - CALCUTTA HIGH COURT] held in favour of the assessee by observing that if in law the assessee was not liable to be assessed on capital gains arising on transfer of agricultural land then the assessee’s claim for its non assessability cannot be denied merely because in the return filed the assessee had mistakenly offered to pay tax on such income - CIT(A) has rightly exercised his jurisdiction in entertaining the additional grounds of exclusion of capital subsidy received by way of sales tax remission under the West Bengal Incentive Scheme 1999 during the year under consideration. Sales tax subsidy received by the assessee from West Bengal Government was in the nature of capital receipt and therefore not liable to tax under the deeming provisions of section 115JB of the Act.
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