Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (4) TMI 1757 - AT - Income TaxDisallowance on account of provision for leave encashment - HELD THAT:- Both parties inform us 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 of sales tax incentive and state capital investment subsidy respectively while computing the book profit u/s 115JB - HELD THAT:- From the foregoing discussion, we note 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 Disallowing the credit for tax paid by assessee by way of adjustment of refund for AY 2011-12 - HELD THAT:- We direct AO to allow the credit of refund pertaining to AY 2011-12 adjusted against the demand for the year under consideration as per the provision of law. In terms of above direction, this ground of assessee is allowed for statistical purpose. Charging interest u/s. 234C on the assessed income rather than on returned income - AR before us brought to our notice that AO has charged interest u/s 234C of the Act on assessed income whereas the provision of section 234C of the Act require to charge the interest on the income declared by assessee in its returned income - HELD THAT:- We set aside the order of Ld. CIT(A) and remit the issue back to the file of AO to pass speaking order after providing reasonable opportunity of being heard to assessee and charge the interest under section 234C of the Act as per the provisions of law. This ground of assessee is allowed for statistical purpose.
|