TMI Blog2018 (4) TMI 262X X X X Extracts X X X X X X X X Extracts X X X X ..... rce in the arguments of ld. AR and no infirmity in the order of CIT(A). Ground no.2 raised by the revenue is dismissed. - ITA No. 2091/Kol/2016 - - - Dated:- 4-4-2018 - Hon ble Shri P. M. Jagtap, AM And Shri S. S. Viswanethra Ravi, JM For the Appellant : Shri Arindam Bhattcharjee, Addl. CIT For the Respondent : Shri Ravi Tulsiyan, FCA ORDER Per S.S.Viswanethra Ravi, JM This is an appeal by the Revenue against the order dated 29.07.2016 passed by C.I.T-(A)-17, Kolkata for A.Y.2011-12. 2. The brief facts of the case are that the assessee is a company engaged in the business manufacturing, processing, marketing of fruit juice and other food items. The assessee filed its return of income declaring total income of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... centive scheme was introduced by the Government of West Bengal to encourage promotion of industries in the state of West Bengal and by placing reliance in the case of Sahaney Steel Press Works Ltd vs CIT (supra) held that this is a capital receipt. The relevant portion of the Tribunal order dated 30.06.2014 is reproduced herein below :- 26. We have heard rival submissions and gone through facts and circumstances of the case. We find that the CIT(A) has considered the legal aspect as to whether the sales tax remission was a revenue or capital receipt in the hands of the assessee. He found that the sales tax remission given under West Bengal Incentive Scheme 1993 and 1999 was not for assisting the assessee in carrying out its business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed by the revenue is dismissed. 7. Ground No.2 raised by the revenue is in relating to disallowance u/s 14A of the Act r.w.r. 8D(2)(iii) wherein we find that the AO disallowed expenditure under Rule 8D(ii) (iii) wherein the CIT(A) on examination of cash flow statement of interest bearing funds found that the assessee incurred expenditure of interest and has direct nexus with the investments as made by the assesee during the year under consideration and confirmed the disallowance of expenditure under Rule 8D(2)(ii) of Rules. Further the CIT(A) by placing reliance in the decision of the Co-ordinate Bench of Tribunal in the case of REI Agro Ltd directed the AO to examine those investments that yielded dividend for the purpose of average ..... X X X X Extracts X X X X X X X X Extracts X X X X
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