M/s Deegee Orchards Private Ltd, Mumbai V. Assistant Commissioner of Income tax Central Circle-1(4), Nagpur

ITA 125/NAG/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 93438 (ITAT-NAGPUR)
• Duration Of Justice: 2 year(s) 3 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-07-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2003-2004
• Appeal Filed On: 08-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NARENDRA KANE
• Keywords: Capital receipt
• Section: 143(3); 153A

Judgement Text

1 ITA NOS. 125 TO 129/NAG/2013 ITA NO. 60/NAG/2013 & ITA NO. 261/NAG/2013 IN THE INCOME TAX APPELLATE TRIBUNAL, NAGPUR BENCH, NAGPUR BEFORE SHRI MUKUL K. SHRAWAT, JUDICIAL MEMBER AND SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER. S.NO. I.T.A. NO. ASSTT. YEAR. 1. 125/NAG/2013 2003 - 04 2. 126/NAG/2013 2004 - 05 3. 60/NAG/2013 2005 - 06 4. 127/NAG/2013 2006 - 07 5. 128/NAG/2013 2007 - 08 6. 129/NAG/2013 2008 - 09 7. 261/NAG/2013 2009 - 10. M/S DEEGEE ORCHARDS PRIVATE LTD. ASSTT. COMMISSIONER OF 4 TH FLOOR, CENT RAL BUILDING NO.3, V/S. INCOME TAX, MASTER BOMANJI LANE, CENTRAL CIRCLE - 1(4), KALBADEVI ROAD, NAGPUR. MUMBAU - 400 00 2. APPELLANT RESPONDENT. APPELLANT BY : SHRI K.P. DEWANI. RESPONDENT BY : SHRI NARENDRA KANE. DATE OF HEARING : 03 - 06 - 2015 DATE OF PRONOUNCEMENT : 31 ST JULY, 2015. O R D E R PER BENCH. THESE SEVEN APPEALS HAVE BEEN FILED BY THE ASSESSEE EMANATING FROM THE ORDER S OF LEARNED CIT(APPEALS) - I, NAGPUR DATED 6 TH MARCH, 2013, 31 - 01 - 2013 AND 2 ITA NOS. 125 TO 129/NAG/2013 ITA NO. 60/NAG/2013 & ITA NO. 261/NAG/2013 05 - 04 - 2013 PERTAINING TO ASSESSMENT YEARS 200 3 - 04 TO 2009 - 10. SINCE THESE APPEALS HAVE COMMON GROUNDS AS WELL AS THE FACTS ARE ALSO IDENTICAL, THEREFORE, HEREBY CONSOLIDATED AND DECIDED BY THIS COMMON ORDER. 2. FOR THE SAKE OF CONVENIENCE WE HAVE TAKEN UP ASSESSMENT YEAR 200 3 - 04 , THE YEAR, FOR REFERENCE AND THE GROUNDS ARE REPRODUCED BELOW : 1. THE LEARNED CIT(A) ERRED IN HOLDING THAT SALES TAX INCENTIVE AVAILED F OR SETTING UP OF INDUSTRIAL UNDERTAKING CLAIMED BY ASSESSEE AS CAPITAL RECEIPT AT ` .33, 74,087/ - CAN NOT BE ALLOWED IN ASSESSMENT FRAMED U/S 143(3) R.W..S. 153A OF I.T. ACT, 1961. 2. THE LEARNED A.O. ERRED IN ASSESSING SALES TAX INCENTIVE AVAILED AS REVENUE RECEIPT AND NOT ACCEPTING THE CLAIM OF ASSESSEE FOR THE SAME BEING CAPIT AL RECEIPT AT THE HANDS OF THE ASSESSEE. 3. THE LEARNED A.O. OUGHT TO HAVE ACCEPTED THE CLAIM OF ASSESSEE THAT SALES TAX INCENTIVE AVAILED AT ` .33,74,087/ - UNDER SCHEME OF INCENTIVE BY GOVERNMENT OF MAHARASHTRA IS CAPITAL RECE IPT AND NOT CHARGEABLE TO TAX. 4. THE ASSESSEE DENIES LIABILITY TO BE ASSESSED TO INTEREST U/S 234C OF THE I.T. ACT, 1961 WITHOUT PREJUDICE, THE LEVY OF INTEREST U/S 234 - C IS UNJUSTIFIED, UNWARRANTED AND EXCESSIVE. 3. ON IDENTICAL FA CTS AND CIRCUMSTANCES WE HAVE TAKEN A VIEW IN A GROUP OF CASES OF M/S NARENDRA VEGETABLE PRODUCTS PVT. LTD. BEARING ITA NOS. 11 8 TO 124/NAG/2013 FOR ASSESSMENT YEARS 2003 - 04 TO 2009 - 10 VIDE ORDER EVEN DATED 31 ST JULY, 2015. FOLLOWING THE REASONS ASSIGNED I N THE SAID ORDER, WE HEREBY DECIDE GROUND NOS. 1,2 AND 3 IN FAVOUR OF THE ASSESSEE. GROUND NO. 4 IS CONSEQUENTIAL IN 3 ITA NOS. 125 TO 129/NAG/2013 ITA NO. 60/NAG/2013 & ITA NO. 261/NAG/2013 NATURE PERTAINING TO CHARGE OF INTEREST NEEDS NO ADJUDICATION PRESENTLY. RESULTANTLY, ALL THE APPEALS ARE ALLOWED. 4. IN THE RESULT, THE APPEALS FILED BY THE ASSESSEE ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 31 ST DAY OF JULY, 2015. SD/ - SD/ - ( SHAMIM YAHYA) (MUKUL K. SHRAWAT) ACCOUNTANT MEMBER. JUDICIAL MEMBER NAGPUR, DATED: 31 ST JULY, 2015. COPY OF ORDER FORWARDED TO : 1. THE ASSESSEE. 2. REVENUE. 3. THE CIT(A) 4. THE CIT, NAGPUR. 5. THE D.R., ITAT, NAGPUR. 6. GUARD FILE. TRUE COPY. BY ORDER ASSISTANT REGISTRAR, ITAT, NAGPUR WAKODE .