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2020 (2) TMI 847 - HC - Income TaxAddition to income declared - Taxability as income in the hands of assessee - surplus earned from functioning of PDS on behalf of Government - concession component received by the assessee Government company in the course of implementing government projects of PDS concession component received by the assessee Government company in the course of implementing government projects of PDS - HELD THAT:- CIT(A) is justified in deleting the addition made by the Assessing Officer by stating that surplus earned from functioning of PDS on behalf of Government cannot be taxed in the hand of the assessee. In view of the above stated facts and findings we uphold the order of the Ld.CIT(A). The various other decisions relied on by assessee in the paper book also supports its case. The submission of the ld. counsel for the assessee that in subsequent years, since subsidy receipt has been accepted by the Revenue, although u/s 143(1), and no action u/s 147 or 263 has been taken could not be controverted by the ld. DR. We, therefore, are of the considered opinion that the concession component received by the assessee Government company in the course of implementing government projects of PDS as its agent, the surplus of which, if any, was refundable or adjustable in future was not income of the assessee.
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