M/s. Mendine Pharmaceutical Pvt. Ltd., , Kolkata V. ITO, Ward - 12(1), Kolkata , Kolkata

ITA 110/KOL/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 2736 (ITAT-KOLKATA)
• Duration Of Justice: 7 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-08-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 23-01-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SAURAV KUMAR CIT D R RESPONDE
• Assessee Lawyers: ROHAN PODDAR
• Keywords: Capital receipt
• Section: 143(3)

Judgement Text

I.T.A. NO 110/KOL/2018 ASSESSMENT YEAR: 2012-2013 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA B(SMC) BENCH, KOLKATA BEFORE SHRI P.M. JAGTAP, ACCOUNTANT MEMBER I.T.A. NO. 110/KOL/2018 ASSESSMENT YEAR: 2012-2013 M/S. MENDINE PHARMACEUTICAL PVT. LIMITED,.......... ..........................APPELLANT 36A & B, ALIPORE ROAD, KOLKATA-700 027 [PAN: AABCM 9146M] -VS.- INCOME TAX OFFICER,................................ ............................................RESPOND ENT WARD-12(1), KOLKATA, P-7, CHOWRINGHEE SQUARE, AAYAKAR BHAWAN, KOLKATA-700 069 APPEARANCES BY: SHRI ROHAN PODDAR, A.R., FOR THE APPELLANT SHRI SAURAV KUMAR, ADDL. CIT, D.R. , FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : JULY 24, 2018 DATE OF PRONOUNCING THE ORDER : AUGUST 29, 2018 O R D E R THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-4, KOLKATA DAT ED 23.11.2017 AND THE SOLITARY ISSUE INVOLVED THEREIN RELATES TO THE ADDITION OF RS.10,34,772/- MADE BY THE ASSESSING OFFICER AND CO NFIRMED BY THE LD. CIT(APPEALS) ON ACCOUNT OF SALES TAX INCENTIVE RECE IVED BY THE ASSESSEE BY TREATING THE SAME AS REVENUE RECEIPT. 2. THE ASSESSEE IN THE PRESENT CASE IS A COMPANY, W HICH IS ENGAGED IN THE BUSINESS OF MANUFACTURING OF MEDICINE. THE RETU RN OF INCOME FOR THE YEAR UNDER CONSIDERATION WAS FILED BY IT ON 29.09.2 012 DECLARING TOTAL INCOME OF RS.9,71,700/-. IN THE SAID RETURN, SUBSID Y OF RS.10,34,722/- RECEIVED IN THE FORM OF SALES TAX INCENTIVE UNDER W EST BENGAL INDUSTRIAL PROMOTION (ASSISTANCE TO INDUSTRIAL UNIT) SCHEME, 1 994 WAS CLAIMED TO BE EXEMPT BEING IN THE NATURE OF CAPITAL RECEIPT. D URING THE COURSE OF ASSESSMENT PROCEEDINGS, THE CLAIM OF THE ASSESSEE F OR THE SAID EXEMPTION I.T.A. NO 110/KOL/2018 ASSESSMENT YEAR: 2012-2013 PAGE 2 OF 3 WAS EXAMINED BY THE ASSESSING OFFICER AND ON SUCH E XAMINATION HE HELD THAT THE SALES TAX INCENTIVE RECEIVED BY THE ASSESS EE WAS IN THE NATURE OF REVENUE RECEIPT CHARGEABLE TO TAX. HE ACCORDINGLY M ADE AN ADDITION OF RS.10,34,722/- TO THE TOTAL INCOME OF THE ASSESSEE IN THE ASSESSMENT COMPLETED UNDER SECTION 143(3) VIDE AN ORDER DATED 17.02.2015. ON APPEAL, THE LD. CIT(APPEALS) CONFIRMED THE SAID ADD ITION. AGGRIEVED BY THE ORDER OF THE LD. CIT(APPEALS), THE ASSESSEE HAS PRE FERRED THIS APPEAL BEFORE THE TRIBUNAL. 3. I HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AND ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. THE LD. COUN SEL FOR THE ASSESSEE HAS CONTENDED THAT THE AMOUNT OF SUBSIDY IN QUESTION IN THE FORM OF SALES TAX INCENTIVE WAS ACTUALLY RECEIVED BY THE ASSESSEE UND ER 2010 SCHEME, BUT THE SAME WAS WRONGLY CLAIMED AS RECEIPT UNDER 1994 SCHEME. HE HAS CONTENDED THAT THE OBJECT OF 2010 SCHEME IS CLEARLY DEFINED IN THE SAID SCHEME AND GOING BY THE SAID OBJECT, THE INCENTIVE RECEIVED UNDER 2010 SCHEME IS EXEMPT FROM TAX BEING IN THE NATURE OF CA PITAL RECEIPT. HE HAS REQUESTED THAT THE MATTER MAY, THEREFORE, BE SENT B ACK TO THE ASSESSING OFFICER FOR EXAMINING THE CLAIM OF THE ASSESSEE FOR EXEMPTION UNDER 2010 SCHEME. I AM INCLINED TO ACCEPT THIS REQUEST MADE B Y THE LD. COUNSEL FOR THE ASSESSEE AND SINCE THE LD. D.R. HAS ALSO NOT RA ISED ANY OBJECTION IN THIS REGARD, I SET ASIDE THE IMPUGNED ORDER OF THE LD. CIT(APPEALS) ON THIS ISSUE AND RESTORE THE MATTER TO THE FILE OF THE ASS ESSING OFFICER FOR DECIDING THE SAME AFRESH AFTER VERIFYING THE CLAIM OF THE ASSESSEE FOR EXEMPTION ON ACCOUNT OF SALES TAX INCENTIVE AS PER THE 2010 SCHEME. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TREATE D AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON AUGUST 29, 20 18. SD/- (P.M. JAGTAP) ACCOUNTANT MEMBER KOLKATA, THE 29 TH DAY OF AUGUST, 2018 I.T.A. NO 110/KOL/2018 ASSESSMENT YEAR: 2012-2013 PAGE 3 OF 3 COPIES TO : (1) M/S. MENDINE PHARMACEUTICAL PVT. LIMITED, 36A & B, ALIPORE ROAD, KOLKATA-700 027 (2) INCOME TAX OFFICER, WARD-12(1), KOLKATA, P-7, CHOWRINGHEE SQUARE, AAYAKAR BHAWAN, KOLKATA-700 069 (3) COMMISSIONER OF INCOME TAX (APPEALS)-4, KOLKA TA, (4) COMMISSIONER OF INCOME TAX- , (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY, HEAD OF OFFICE/D.D.O. INCOME TAX APPELLATE TRIBUNAL, KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.