Samrat Ferro Alloys Pvt. Ltd., Jammu V. The Dy. Commissioner of Income Tax,

ITA 179/ASR/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 8811 (ITAT-AMRITSAR)
• Duration Of Justice: 9 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-01-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 03-01-2017
• Assessment Year: 2010-2011
• Appeal Filed On: 01-04-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: BHAWANI SHANKAR
• Keywords: Assessment record; Capital receipt
• Section: 32; 147; 131; 68; 246; 69; 145; 27; 148; 54; 37; 6; 56; 263; 63; 132; 12; 28; 144; 10; 90; 154; 2; 11; 15; 271(1)(b); 139; 92

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH; AMRITSAR (CAMP AT JALANDH AR ) BEFORE SH. A.D.JAIN, JUDICIAL MEMBER AND SH. T.S. KAPOOR, ACCOUNTANT MEMBER I.T.A NO.179(ASR)/2016 ASSESSMENT YEARS: 2010-11 SAMRAT FERRO ALLOY S PVT. LTD . , VILL. THANGER BYE PASS ROAD, JAMMU. PAN: AAWPK-1111E VS. DY. CIT, CIRCLE-1, JAMMU. (APPELLANT) (RESPONDENT) APPELLANT BY: SH. R.K.GUPTA (CA.) RESPONDENT BY: SH. BHAWANI SHANKAR (DR.) DATE OF HEARING: 16.01. 2017 DATE OF PRONOUNCEMENT: 20.01.2017 ORDER PER A. D. JAIN (JM): THIS IS ASSESSEES APPEAL, FOR THE ASST. YEAR: 2010-11 AGAINST THE ORDER DATED 23.12.2015, PASSED BY THE LEARNED CIT(A), JAMMU . 2. THE ONLY GROUND HAS BEEN RAISED BY THE ASSESSEE IS: THAT THE WORTHY CIT(A) IS NOT JUSTIFIED IN CONFIRM ING THE ACTION OF THE LD. A.O FOR NOT ACCEPTING THE CLAIM OF APPELLANT MADE D URING THE COURSE OF ASSESSMENT PROCEEDINGS FOR TREATING THE EXCISE DUTY REFUND AMOUNTING TO RS.47,48,411/- & INTEREST SUBSIDY AMOUNTING TO RS.8 ,03,220/- RECEIVED IN ACCORDANCE WITH THE INDUSTRIAL POLICY AS A CAPITAL RECEIPT. WORTHY CIT(A) HAS FAILED TO OBSERVED THAT IT IS AN ISSUE ON THE Q UESTION OF LAW AND IS EMERGING FROM ASSESSMENT RECORDS AS SUCH IT WAS REQ UIRED TO BE ENTERTAINED. 3. AT THE TIME OF HEARING, THE LD. COUNSEL FOR THE ASSESSEE SUBMITT ED THAT THE ISSUE IN QUESTION HAS ALREADY BEEN DECIDED BY THE JURISDI CTIONAL HIGH COURT OF J&K IN THE CASE OF SHREE BALAJI ALLOYS V. CIT AND ANOTHER, ITA NO.17 9 (ASR)/2016 ASST. YEAR: 2010-2011 2 (2011) 333 ITR 335 (J&K) IN FAVOUR OF THE ASSESSEE AND AGAINST THE REVENUE, WHERE THE HONBLE HIGH COURT HELD THAT EXCISE DUTY REFUN D IS TO BE TREATED AS CAPITAL RECEIPT AND NOT LIABLE TO BE TAXED . 4. THE LD. DR, ON THE OTHER HAND, RELIED ON THE IMPUGNED OR DER. 6. WE HAVE HEARD THE BOTH PARTIES AND HAVE PERUSED THE MATERIAL AVAILABLE ON RECORD WITH US AND WE ARE OF THE VIEW THAT THE ISSUE INVOLVED IN THE GROUNDS OF THE APPEAL OF THE ASSESSEE RELATING TO EXCISE DUTY REFUND AMOUNTING TO RS.47,48,411/- & INTEREST SUBSIDY AMOUN TING TO RS.8,03,220/- RECEIVED IN ACCORDANCE WITH THE INDUSTRIAL POLIC Y AS CAPITAL RECEIPT IS SQUARELY COVERED BY THE JUDGMENT OF THE HONBLE JURISDI CTIONAL HIGH COURT OF JAMMU & KASHMIR IN THE CASE OF SHREE BALAJI ALLOYS V. CIT AND ANOTHER,(2011) 333 ITR 335 (J&K) IN FAVOUR OF TH E ASSESSEE AND AGAINST THE REVENUE. WHERE THE HONBLE HIGH COURT HAS HELD THAT T HE EXCISE DUTY REFUND IS TO BE TREATED AS CAPITAL RECEIPT AND IS NOT LIABLE TO BE TAXED. THEREFORE, RESPECTFULLY FOLLOWING THE DECISION OF THE HO NBLE JURISDICTIONAL HIGH COURT OF JAMMU & KASHMIR IN THE CASE O F SHREE BALAJI ALLOYS V. CIT AND ANOTHER(SUPRA), THE GROUND OF T HE ASSESSEES APPEAL IS ALLOWED. 7. IN THE RESULT, THE APPEAL FILED BY ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 20.01. 2017. SD/- SD/- (T. S. KAPOOR) (A.D. JAIN) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED:20.01.2017. /PK/ PS. ITA NO.17 9 (ASR)/2016 ASST. YEAR: 2010-2011 3 COPY OF THE ORDER FORWARDED TO: (1) THE ASSESSEE: (2) THE (3) THE CIT(A), (4) THE CIT, (5) THE SR DR, I.T.A.T., TRUE COPY BY ORDER