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2017 (6) TMI 828 - AT - Income TaxExcise duty refund - revenue or capital income - eligibility for deduction u/s 80IB - Held that:- Excise duty Refund was capital in nature since it was granted to achieve the purpose of acceleration of industrial development in the State and generation of employment which were public purposes and thus could not be construed as operational incentives. Thus it is settled that subsidy received by way of refund of excise duty for setting up new industrial undertaking is a capital receipt and not taxable as income. See M/s Shree Balaji Alloys & Others (2016 (4) TMI 1161 - SUPREME COURT ) and CIT Vs. Meghalaya Steels (2016 (3) TMI 375 - SUPREME COURT ). Addition on account of rebate and discount relating to purchase of material - eligibility for deduction u/s 80IB - Held that:- Identical issue of allowance of deduction u/s 80IB on rebates and discounts earned by the assessee on purchases made by it had arisen in the case of the assessee in assessment year 2010-11 wherein the I.T.A.T. had held that the assessee was entitled to deduction on the same. No change in facts have been brought to our notice by the learned D.R. from the assessment year 2010-11. In view of the same we see no reason to interfere in the order of the learned CIT (Appeals) who has allowed the assessee’s appeal. Addition on account of interest received on FDRs by denying deduction u/s 80IB on the same- Held that:- CIT (Appeals) after giving a categorical finding that out of the total interest credited to the Profit and Loss Account of ₹ 2,20,834/-, the assessee had not claimed deduction under section 80IB of ₹ 1,43,585/-, directed the Assessing Officer to allow deduction under section 80IB as per law after due verification. Therefore the contention of the Ld.DR that the assessee has been allowed deduction u/s 80IB on the balance portion of ₹ 77,249/-, we find is incorrect. At the same time the assessee has misconstrued the findings of the Ld.CIT(Appeals) to mean that the entire issue has been restored to the Assessing Officer to decide as per law, since the Ld.CIT(Appeals) has no powers to set aside a case to the AO, as per the provisions of section 251(1) of the Act, which deal with powers of the CIT(A)’s. But, we may add in the same breath, that it cannot be denied that the balance interest income of ₹ 77,249/- has not been dealt with by the Ld. CIT(Appeals). We therefore restore the issue of allowance of deduction u/s 80IB on the interest income of ₹ 77,249/-back to the file of the CIT(Appeals) to decide it afresh by passing a speaking order
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