9911796707
TMI Blog2023 (10) TMI 391X X X X Extracts X X X X X X X X Extracts X X X X ..... AO') u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') on 13/04/2019. 2. The assessee has raised the following grounds of appeal:- "1. The Ld. CMA) has grossly erred on facts and in law in not considering the claim of the appellant in the processing intimation passed u/s 143(1) of the IT Act, 1961 that income of Rs. 2,15.96.571 from the scrips granted under MEIS of the Foreign Trade Policy 2015-20 be treated as capital receipts not chargeable to tax and therefore the same should not from part of the taxable income notwithstanding the fact that the same has been offered for tax in the return of income. 2. That Ld. CMA) has erred of facts and in law in not considering the claim of the appellant processing ini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... business of manufacturing of steel bars of various kinds and shapes and substantial part of the manufactured products are exported to various countries. Accordingly, the assessee would be granted export incentives by the Government of India from time to time. The Government, in order to award the exporters, happened to devise a scheme through the Foreign Trade Policy 2015-20 announced for the previous year relevant to Asst Year 2018-19. The key objective of the MEIS schemes introduced through above Foreign Trade Policy was to furnish the exporters with rewards in the form of duty credit scrips. These duty credit scrips were awarded under the above scheme to enable exporters to pay customs duty. The primary objective of offering these incen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exports done in Asst Year 2018-19. It was submitted that the assessee during the year under consideration transferred the MEIS licences of face value of Rs 2,03,40,003/- for aggregate consideration of Rs 1,93,75,437/- resulting into loss of Rs 9,64,566/-. The details of individual MEIS licences together with the profit or loss thereon were duly furnished before the ld. CIT(A). The closing balance of MEIS licences as on 31.03.2018 stood at Rs 1,31,33,746/-, which is shown in the Balance Sheet as part of 'Balance with Government Authorities' in Note No. 12 under the head Loans and Advances. The loss of Rs 9,64,556/- from sale of MEIS licences was claimed as deduction while accounting for the export benefit . The export benefit as per Note No ..... X X X X Extracts X X X X X X X X Extracts X X X X
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