Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (1) TMI 1265 - AT - Income TaxRectification of mistake - treating the amounts of interest subsidy and excise duty refund as capital receipts - Held that:- Section 154 has been enacted to enable the authorities to rectify the mistake whether the mistake is done by assessee or by AO. The legislative intent in section 154 is not to allow a mistake to continue. A liberal construction of the statute has to be made else the object of the legislation shall be forfeited. Accordingly, the arguments by Ld. DR cannot help the Revenue. Therefore, in the circumstances and facts of the present case, Hon’ble Jurisdictional Court of J & K in the case of Shree Balaji Alloys reported as (2011 (1) TMI 394 - Jammu and Kashmir High Court ) having held the Excise Duty Refund and Interest Subsidy received by the assessee as capital receipts is a decision subsequent to the decision of AO dated 17.12.2009 where such receipts have been accepted as revenue as returned by the assessee. Accordingly, in view of the decision in the case of Smt. Arun Luthra (2001 (8) TMI 84 - PUNJAB AND HARYANA High Court ) and Kil Kotagiri Tea and Coffee Estates Ltd. (1988 (7) TMI 54 - KERALA High Court), we are of the view that there is a mistake apparent from record which is rectifiable u/s 154 of the Act and the Ld. CIT(A) has rightly directed the AO to carry out the necessary rectification and the order of the Ld. CIT(A) is found to be well reasoned one and we find no infirmity in the same.
|