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2020 (3) TMI 220 - AT - Income TaxRevision u/s 263 - excise duty refund and interest subsidy to be treated as revenue or capital receipt - to be included in computation of section 115JB book profits since forming part of the corresponding reserves - HELD THAT:- Since the learned coordinate bench(es) had already accepted the assessee’s case drawing distinction between the two subsidy schemes, the impugned receipts have therefore rightly held as capital and not revenue in the regular assessment in issue. Coming to latter issue of section 115JB book profit computation of the corresponding excise duty refund and interest subsidy reserves (supra), we note that this tribunal’s coordinate in Binani Industries Ltd vs. CIT [2016 (3) TMI 873 - ITAT KOLKATA] , Indo Rama Syntehetics (I) Ltd. [2011 (1) TMI 1 - SUPREME COURT] , Apollo Tyres Ltd. [2002 (5) TMI 5 - SUPREME COURT] that when a receipt is not even a revenue item, the same also does not form part of book profits u/s 115JB of the Act. Hon’ble jurisdictional high court in PCIT vs. Ankit Metal & Power Ltd. [2019 (7) TMI 878 - CALCUTTA HIGH COURT] also reiterate the very proposition. We follow the very reasoning herein as well mutatis mutandis and conclude that the PCIT’s twin orders under challenge in these assessment years have erred in law and on facts in assuming revision jurisdiction since the Assessing Officer had rightly not included the excise duty refund and interest subsidy as a revenue item in normal computation and corresponding reserves for book profits u/s 115JB of the Act. PCIT’s revision direction under challenge are reversed and the impugned both regular assessments in these two assessment years are restored as a necessary corollary. - Decided in favour of assessee.
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