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2018 (1) TMI 1615 - AT - Income TaxDenial of natural justice - claim made by the assessee without filing a revised return - Sales tax subsidy as capital receipt OR revenue receipt - Revenue raising the issue of violation of Rule 46A of Income Tax Rules - as contended that when the fresh claim made by the assessee for exclusion of sales tax subsidy, otherwise than by filing a revised return, was not entertained by the AO CIT(Appeals) ought to have given opportunity the Assessing Officer to examine the said claim of the assessee as required by Rule 46A of the Income Tax Rules - HELD THAT:- We find merit in the contention raised by the assessee in this regard that there being no additional evidence filed by the assessee before the ld. CIT(Appeals) in support of its claim for exclusion of sales tax subsidy, Rule 46A has no application and the ld. CIT(Appeals) was not required to give any opportunity to the Assessing Officer to verify the claim of the assessee. CIT (D.R.) has urged that such opportunity even otherwise deserves to be given to the Assessing Officer in the interest of substantial justice. CIT(Appeals), who is having co-terminus powers to that of the Assessing Officer, has already examined this issue in detail in the light of the material available on record including the scheme of the West Bengal Government under which the amount of sales tax subsidy in question was received by the assessee and after having satisfied himself on merit, he has allowed the claim of the assessee for exclusion of sales tax subsidy by treating the same as capital receipt not chargeable to tax. As this issue is squarely covered in favour of the assessee by the decision of the Hon’ble Calcutta High Court in the case of Rasoi Limited [2011 (5) TMI 23 - CALCUTTA HIGH COURT]and since the ld. CIT(Appeals) has given relief to the assessee on this issue by relying on the said decision of the Hon’ble jurisdictional High Court, we are of the view that no cause of justice is going to be served by sending the matter back to the Assessing Officer for examination - uphold the impugned order of the ld. CIT(Appeals) allowing the claim of the assessee for exclusion of sales tax subsidy by treating the same as capital receipt not liable to tax and dismiss this appeal of the Revenue.
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