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2019 (10) TMI 353 - AT - Income TaxAddition made on account of leave encashment u/s 43B - Delayed payment -HELD THAT:- As during the course of hearing that hon'ble jurisdictional high court’s decision in Exide Industries Ltd. vs. Union of India [2007 (6) TMI 175 - CALCUTTA HIGH COURT] quashing the statutory provision itself to be ultra vires. Hon'ble apex court [2009 (5) TMI 894 - SC ORDER] has stayed operation thereof vide order dated 08.05.2009. The assessee’s instant former substantive ground is restored back to the Assessing Officer to be decided afresh after the final outcome in Revenue’s appeal in Exide Industries Ltd. Disallowance in computing the book profit u/s 115JB relating to Industrial Promotion Assistance and Sales Tax Incentive - HELD THAT:- Subsidy was given by the Govt. of West Bengal for the purpose of enabling the entrepreneurs to establish new industry and also expand the existing industries. Under normal computation of income the subsidy given to promote the industries are not subject to tax, therefore, an item which is not taxable cannot be brought to tax under the provision of MAT. In holding so, we rely on the order of this co-ordinate Bench of this Tribunal in the case of Sicpa India (P) Ltd. [2017 (3) TMI 1383 - ITAT KOLKATA] The undisputed fact is that the incentive received by assessee is not in the nature of income earned during the course of business. Therefore, in our considered view, same cannot be regarded as “income” for the purpose of MAT u/s 115JB of the Act. Thus, the amount of incentive received by assessee should be excluded from the determination of book profit under the provision of Section 115JB - we reverse the order of Ld. CIT(A). and direct the AO to delete the same - Decided in favour of assessee Disallowance made on account of Industrial Promotion Assistance and Deferred Sales Tax Liability - HELD THAT:- It is noted that this Tribunal in assessee’s own case for Assessment Year 2010-11 held that subsidies given to promote industries are not subjected to tax Disallowance made u/s 14A - CIT-A deleted the addition - HELD THAT:- This Court in Cheminvest Limited vs. Commissioner of Income Tax-VI, [2015 (9) TMI 238 - DELHI HIGH COURT] which ruled in the absence of any exempt income, disallowance under Section 14A of the Act of any amount was not permissible. Since the decision in Cheminvest Limited (supra) was followed, there is no substantial question of law that requires consideration Addition made by Assessing Officer on account of 14A u/s 115JB - HELD THAT:- Issue raised is decided by the decision of the Coordinate Bench of this Tribunal in the case of Goetze India Limited [2009 (5) TMI 615 - ITAT DELHI] wherein the similar addition made to the book profit of the assessee-company computed under section 115JB on account of disallowance of expenses made under section 14A was held to be unsustainable by the Tribunal holding that the provisions of section 14A could not be imported into Clause (f) of Explanation (1) to section 115JA.
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