Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

The A.C.I.T., Circle 5 (1) , Chandigarh Versus M/s Green Field Enterprises

Excise 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 tax .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ad 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

by revenue are as under: 1. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in allowing appeal of the assessee without appreciating the facts of the case. 2. On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in holding that the excise duty refund of ₹ 1,65,02,244/- received by the assessee constituted a capital receipt not liable to tax under the provisions of Income Tax Act, 1961. 3. On the facts and circumstances of th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rofit & Loss account and the assessee is liable for deduction u/s 80IB. 5. It is prayed that the order of the Ld. CIT(A) be set aside and that of the Assessing Officer may be restored. 6. The appellant craves leave to add or amend any grounds of appeal before the appeal is heard or disposed off. 3. Ground Nos.1, 5 and 6 being general in nature need no adjudication and are, therefore, not being dealt with by us. 4. Ground No.2 raised by the Revenue is against the action of the Ld.CIT(Appeals) .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

disallowed the claim, holding that it cannot be said to be derived from the business of the assessee, which is a prerequisite for claiming the said deduction, since its source was not from the industrial undertaking of the assessee but the scheme of the Central Government. 6. The matter was carried in appeal before the Ld.CIT(Appeals), where the assessee argued that the Hon'ble Jammu & Kashmir High Court in the case of M/s Shree Balaji Alloys & Others Vs. CIT in ITA No.2 of 2010 &am .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

re. The Ld.CIT(Appeals) after considering the assessee s submissions deleted the addition made by following the order of the I.T.A.T. in assessee s own case for assessment year 2010-11 vide its order in ITA No.971/Chd/2013 dated 2.5.2016. 7. Aggrieved by the same, the Revenue has now come up in appeal before us. While the Ld. DR relied upon the order of the Assessing Officer and stated that the excise duty refund receipt was revenue in nature and having no direct nexus with the business of the a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ts deductibility u/s 80IB, we find that the same has attained finality in view of the decision of the Hon'ble Apex Court in the case of M/s Shree Balaji Alloys & Others (supra) and in the case of CIT Vs. Meghalaya Steels 383 ITR 217 (SC). The Hon'ble Apex Court in the case of M/s Shree Balaji Alloys & Others (supra) dismissed the appeal of the Revenue against the order of the Hon'ble Jammu & Kashmir High Court following its decision rendered in the case of CIT Vs. Meghala .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

come. 10. In view of the same, we find no reason to interfere in the order of the Ld.CIT(Appeals) deleting the addition made on account of excise duty refund amounting to ₹ 1,65,02,244/-. Ground No.2 raised by the Revenue is, therefore, dismissed in the above terms. 11. Ground No.3 raised by the Revenue is against the action of the Ld.CIT(Appeals) in deleting the addition of ₹ 11,22,561/- made on account of rebate and discount relating to purchase of material and holding that the ass .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s not entitled to claim deduction u/s 80IB of the Act on account of the same. 13. Before the Ld.CIT(Appeals), the assessee contended that rebate and discount has been received by the assessee on purchases made by it in its unit set up in Jammu & Kashmir, which was eligible to claim deduction of its profits u/s 80IB, and the assessee had instead of deducting this amount from purchases had shown the same separately on the credit side of the Profit & Loss Account. The assessee submitted tha .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ng the assessee s submissions deleted the disallowance made relying upon the decision of the I.T.A.T. in assessee s own assessee for assessment year 2010-11. 14. Before us, the learned D.R. relied upon the order of the Assessing Officer, while the Ld. counsel for the assessee relied upon the order of the learned CIT (Appeals). 15. Having heard both the parties, we find no merit in the ground raised by the Revenue. Undisputedly, identical issue of allowance of deduction u/s 80IB on rebates and di .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

re in the order of the learned CIT (Appeals) who has allowed the assessee s appeal by following the decision of the I.T.A.T. in assessee s own case in assessment year 2010-11. In view of the same ground No.3 raised by the Revenue is dismissed. 16. Ground No.4 raised by the Revenue is against the action of the learned CIT (Appeals) in deleting the addition made by the Assessing Officer of ₹ 77,249/- on account of interest received on FDRs by denying deduction u/s 80IB on the same. 17. Brief .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Before the learned CIT (Appeals), the assessee contended that out of the total interest credited to the Profit and Loss Account of ₹ 2,20,834/-, ₹ 68,220/- was interest received on FDRs and ₹ 1,52,614/- was interest received from other sources. The assessee submitted that no deduction u/s 80IB had been claimed on ₹ 1,43,585/-. The learned CIT (Appeals) after considering assessee s submissions and after perusing the computation of income found that the assessee had not cl .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

but had in fact directed the Assessing Officer to allow deduction on the same under section 80IB of the Act as per law after due verification. The Ld. counsel for the assessee drew our attention to the order of the learned CIT (Appeals) giving the aforesaid directions at para 8.3. 21. We have heard the rival contentions. We are not in agreement with the contention raised by the Ld.DR. On perusal of the order of the learned CIT (Appeals) we find that the learned CIT (Appeals) after giving a cate .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     Latest Happenings     ↓  

Forum: GST on RCM on rent in a unregistered state

Forum: COMPOSITION SCHEME

Article: Websites of Government Departments need lot of improvement. We are noticing detoriations in them for example, case of website of ITAT.

Highlight: Levy of additions tax u/s 115O on distribution of dividend - shares of its profits declared as distributable among the shareholders is not impressed with the character of the profit from which it reaches the hands of the shareholder - not to be bifurcated as agriculture and non-agriculture dividend - SC

Highlight: Rate of GST on old and scrap buses - 28% or 18% - at such initial tender process initiated by the Respondents-KSRTC, the present petitions filed by the petitioners are premature and misconceived and do not require any interference by this Court at this stage. - HC

Forum: Rent a cab operator

Highlight: In view of amendment made u/s 132A of the Income Tax Act, 1961 by Finance Act of 2017, the 'reason to believe' or 'reason to suspect', as the case may be, shall not be disclosed to any person or any authority or the Appellate Tribunal, SC dismissed the appeal of the assessee

Highlight: Validity of Assessment Order - period of limitation u/s 153 (2A) is applicable even if the entire order was not set aside but matter was remanded back for for limited aspects with directions - HC

News: Note ban was a shake-up, achieved its main objectives

Notification: Amendments in the notification No.5/2017- Integrated Tax (Rate) dated the 28th June, 2017.

Highlight: Levying interest u/s 234C - interest is to be charged on the returned income and not on assessed income.

Highlight: Accrual of income - sale of right to develop and sell incentive FSI under LOI - till the conditions of LOI are fulfilled transfer is not complete and income does not accrue to the assessee

Highlight: TPA - determination of ALP - TP adjustment by applying Bright Line Test (BLT) is not sustainable on protective basis having no statutory mandate.

Highlight: Safeguard Duty - Advance License Scheme - as there is no exemption from safeguard duty leviable under Section 8C, which is imposed on the goods imported from China, the importer has to pay safeguard duty

Highlight: Manufacture - process of cutting of waste plastic container - Such plastic containers before and after cutting are nothing but waste / scrap - Not a manufacturing activity as no new product emerges.

News: NITI Aayog and Govt. of Assam organizes workshop on health sector reforms in Guwahati; launches SATH- Sustainable Action for Transforming Human Capital

Notification: Seeks to amend notification no. 5/2017- central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding restriction of refund on corduroy fabrics

Notification: Seeks to amend notification no. 2/2017- central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst exemptions

Forum: GSTR 3B Rectification

Notification: seeks to exempt Skimmed milk powder, or concentrated milk

Notification: Seeks to amend notification no. 2/2017- integrated tax(rate) dated 28.06.2017 to give effect to GST council decisions regarding GST exemptions.

Forum: 3B mistake

Notification: Seeks to amend notification no. 1/2017- central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst rates

Notification: Seeks to amend notification no. 1/2017- integrated tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst rates.

Forum: GST - TRAN1 - filed - Data uploaded with Remarks Processed with Error - Not coming in Electronic credit ledger - need suggession guidance

News: Notification Issued For GST Actionable Claim On Branded Food Products

Highlight: Classification printed computer stationary/manifold Business Forms - to be classified under Chapter Heading 4820.00 or under Chapter Heading 4901.90 - items like A4 sheets, advertisement and job card to be classified under Chapter 49

Forum: GST Invoice

Article: RCM – Applicability to persons not liable to get registered us 23(1)

Article: Credit of unsold stock [Section 140(3)] - Actual Credit as well as Notional Credit - Part-I - GST Transitional provisions

News: GST Refund - Blockage of Working Capital of Exporters - earlier also there was a normal blockage of funds for a period of 5-6 months at least

News: Clarification about Transition Credit - ₹ 1.27 lakh crore of credit of Central Excise and Service Tax was lying as closing balance as on 30th June, 2017 - claim of credit of ₹ 65,000 crore is not unexpected

Article: 20 Things You must know about E Way Bills in GST Law

Article: MISTAKES IN DRAFTING

Forum: Duty Drawback- Urgent

Highlight: The Customs and Central Excise Duties Drawback Rules, 2017 and All Industry Rates (AIRs) of Drawback related changes -reg. - Circular

Highlight: The definition of "subsidiary company" or "subsidiary" u/s 2(87) of the Companies Act, 2013 shall come into force w.e.f. 20-9-2017

Highlight: Central Government notified the All Industry Rates of Duty Drawback Schedule w.e.f. 1.10.2017 - Notification

Notification: All Industry Rates of Duty Drawback Schedule w.e.f. 1.10.2017

Circular: Investment by Foreign Portfolio Investors in Corporate Debt Securities – Review

Notification: Exemptions on supply of services under UTGST Act

Notification: Rates for supply of services under UTGST Act

Notification: Exemptions on supply of services under IGST Act

Notification: Rates for supply of services under IGST Act

Notification: List of Exempted supply of services under the CGST Act

Notification: Rates for supply of services under CGST Act

Highlight: Acceptance of deposits by companies from its members - conditions relaxed in case of Specified IFSC Public company and a private company - Rule 3 amended

Notification: Rate of exchange of conversion of the foreign currency with effect from 8th September, 2017

News: Tax Payers Advised To Confirm Identities Of Income Tax Search Authorities

Notification: Amendment in Appendix 3 (SCOMET items) to Schedule- 2 of ITC (HS) Classification of Export and Import Items 2012



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version