TMI Blog2018 (5) TMI 128X X X X Extracts X X X X X X X X Extracts X X X X ..... he CIT(A) is correct and in accordance with law and no interference is called for. - Decided against revenue. - ITA No. 1863/Kol/2016 - - - Dated:- 4-4-2018 - Shri N.V.Vasudevan, Judicial Member And Shri Waseem Ahmed, Accountant Member By Appellant : Shri Arindam Bhattacharjee, Addl. CIT-DR By Respondent : Shri Sanjeev Kadel, FCA ORDER Per Waseem Ahmed, Accountant Member This appeal by the Revenue is directed against the order of Commissioner of Income Tax (Appeals)-9, Kolkata dated 21.06.2016. Assessment was framed by ACIT, Circle-31, Kolkata u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred to as the Act ) vide his order dated 28.02.2016 for assessment year 2013-14. The grounds of appeal raised by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The assessee submitted that refund of custom/excise duty and interest subsidy was given for the promotion of industry in the State of Jammu and Kashmir. Therefore, the subsidy received by its nature is of capital receipt not chargeable to tax. The assessee in support of its claim relied on the judgment of Hon'ble Jammu Kashmir High Court in the case of Shree Balaji Alloys vs. CIT (2011) 333 ITR 335 (J K). However, Assessing Officer assumed that the incentive was given to the assessee for extending assistance in carrying out the business in more profitable and competitive manner after the commencement of commercial production. Therefore the same is in the nature of revenue subsidy and taxable under the Act. The AO also observed that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of a sister concern of appeal viz. Krihi Rasayan Exports Pvt. Ltd, the CIT(A)-XII, Kolkata has considered this issue for AYs 2010- 11, 2011-12 and 2012-13 and has held these receipts as capital receipts 4.4 in the case of DCIT v Gloster Jute Mills Lt. in ITA No.766/Kol/2010, the Hon'ble ITAT has held similarly. 4.5 In view of thee judgment, the AO is directed to treat the Excise Duty Refund and Interest Subsidy as capital receipts. Aggrieved by the above finding of Ld. CIT(A), the Revenue is in appeal before the Tribunal. 5. Before us both parties relied on the order of Authorities Below as favourable to them. 6. We have heard the rival submissions made by the parties. We have also examined the orders passed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of creation of New Assets of Industrial Atmosphere and Environment, having the potential of employment generation to achieve a social object. Such incentives, designed to achieve Public Purpose, cannot, by any stretch of reasoning, be construed as production or operational incentives for the benefit of assessees alone. 27. Thus, looking to the purpose of eradication of the social problem of unemployment in the State by acceleration of the industrial development and removing backwardness of the area that lagged behind in Industrial development, which is certainly a purpose in the Public Interest, the incentives provided by the Office Memorandum and statutory notifications issued in this behalf, to the appellants-assessees, cannot be c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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