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2020 (10) TMI 131 - AT - Income TaxSubsidy received under TUFS - Income chargeable to tax - CIT(A) had adjudicated the non-taxability of the receipt of subsidy after due examination of the relevant scheme which are available in the public domain - HELD THAT:- The entire scheme of taxation after determining the total income is governed by the provisions of the Income Tax Act which is to be read with Article 265 of the Constitution of India which stipulates that “no tax could be collected except by authority of law”. Hence, it is a legal mandate and pre-requisite that a particular receipt need to be taxed within the ambit of the provisions of the Income Tax Act. The receipt does not become taxable, merely because it was erroneously offered to tax by the assessee in the return of income. The department is entitled to collect only legitimate tax that are due from the assessee. Hon‟ble Gujarat High Court in the case of CIT vs. Milton Laminates Ltd. [2013 (3) TMI 192 - GUJARAT HIGH COURT] after considering the decision of the Hon‟ble Supreme Court in the case of CIT vs. Shelly Products [2003 (5) TMI 4 - SUPREME COURT] had held that assessed income could be below the returned income. We hold that CIT(A) was justified in holding that assessed income could go below the returned income. Our aforesaid observations on merits and on technicalities and in view of the decision of the Hon‟ble Supreme Court in the case of Ponni Sugars [2008 (9) TMI 14 - SUPREME COURT]we do not find any infirmity in the entire order of the ld. CIT(A) granting relief to the assessee both on technicalities and on merits. Accordingly, the grounds raised by the revenue are dismissed.
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