DCIT Circle 12(1), New Delhi V. M/s. Indo Rama Synthetics (India) Ltd., Gurgaon

ITA 1915/DEL/2018

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 7302 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-04-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 19-03-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Capital receipt

Judgement Text

1 THE INCOME TAX APPELLATE TRIBUNAL, DELHI C BENCH, NEW DELHI [THROUGH VIDEO CONFERENCE] BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER, AND SHRI SUDHANSHU SRIVASTAVA, JU DICIAL MEMBER ITA NO. 1915/DEL/2018 [ASSESSMENT YEAR: 2014-15] THE DY. C.I.T VS. M/S INDO RAMA SYNTHETICS INDI A PVT LTD CIRCLE 12(1) 20 TH FLOOR, DLF SQUARE, DLF PHASE - II NEW DELHI N H 8, GURGAON, HARYANA PAN: AAACI 1530 L [APPELLANT] [RESPONDENT] DATE OF HEARING : 05.04.2021 DATE OF PRONOUNCEMENT : 05.04.2021 REVENUE BY : MS. SUNITA SINGH, CIT-DR ASSESSEE BY : SHRI ROHIT JAIN, ADV MS. DEEPASHREE RAO, ADV ORDER PER N.K. BILLAIYA, ACCOUNTANT MEMBER, THIS APPEAL BY THE REVENUE IS PREFERRED AGAINST THE ORDER OF THE LD. CIT(A) 22, NEW DELHI DATED 05.12.2017 PERTAIN ING TO ASSESSMENT YEAR 2014-15. 2 2. THE SOLITARY GRIEVANCE OF THE REVENUE IS THAT TH E LD. CIT(A) ERRED IN DELETING THE DISALLOWANCE MADE ON T HE SALES- TAX SUBSIDY OF RS. 56.57 CRORES ON THE GROUND THAT THE SALES TAX SUBSIDY IS CAPITAL RECEIPT NOT CHARGEABLE TO TA X. 3. AT THE VERY OUTSET, THE LD. COUNSEL FOR THE ASSE SSEE SUBMITTED THAT THIS ISSUE IS WELL SETTLED IN FAVOUR OF THE ASSESSEE AND AGAINST THE REVENUE BY THE TRIBUNAL SI NCE A.Y 1997-98, 2003-04 AND 2004-05 AND ALSO IN A.Y 2005-0 6, 2006- 07, 2008-09 AND 2009-10 AND ALSO IN A.Y 2013-14. T HE LD. COUNSEL FOR THE ASSESSEE SUPPLIED COPIES OF THE ORD ERS OF THE TRIBUNAL. 4. THE LD. DR FAIRLY CONCEDED TO THIS. 5. WE HAVE GIVEN THOUGHTFUL CONSIDERATION TO THE OR DERS OF THE AUTHORITIES BELOW. WE FIND THAT THE ASSESSING O FFICER HIMSELF HAS FOLLOWED THE ASSESSMENT FOR A.Y 2013-14 . THE QUARREL IN A.Y 2013-14 TRAVELLED UPTO THE TRIBUNAL AND THIS TRIBUNAL IN ITA NO. 5233/DEL/2017 ORDER DATED 26.11 .2020 HAS DECIDED THIS ISSUE AS UNDER: 3 7. WE HAVE CAREFULLY CONSIDERED THE ORDERS OF THE AUTHORITY BELOW. WE FIND FORCE IN THE CLAIM THAT THE IMPUGNED ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE AND AGAINST THE R EVENUE BY THE EARLIER ORDER OF THE TRIBUNAL IN ITA NO. 2130/DEL/2 008, 967/DEL/2010 AND 5323/DEL/2011 WHEREIN THE TRIBUNAL HELD AS UNDER :- 'WE HAVE HEARD THE RIVAL CONTENTIONS IN LIGHT OF TH E MATERIAL PRODUCED AND PRECEDENTS RELIED UPON. WE FI ND THAT LD. CIT(A) HAS GIVEN A FINDING THAT ISSUE IN D ISPUTE WAS COVERED BY THE SPECIAL BENCH DECISION OF THE TRIBUNAL IN THE CASE OF RELIANCE INDUSTRIES LTD. (S UPRA). THOUGH THE SCHEME APPLICABLE IN THE CASE OF RELIANC E INDUSTRIES LTD. WAS 1979 SCHEME, HOWEVER, IN THE 19 93 SCHEME TERMS AND CONDITIONS WERE OF THE SAME NATURE AND INTENT. FOR THIS PURPOSE, A COMPARATIVE CHART W AS REFERRED BY THE LD. CIT(A). AS PER THE COMPARATIVE CHART THE TERMS AND CONDITIONS APPLICABLE IN 1979 S CHEME WERE OF THE SAME NATURE AND INTENT OF THE 1993 SCHE ME. WE FURTHER NOTE THAT MUMBAI TRIBUNAL IN THE CASE OF EVEREST INDUSTRIES LTD. IN IT A NO. 814/MUM/2007 HA S HELD THAT SALIENT FEATURES OF THE 1993 SCHEME ARE IDENTICAL TO THAT OF 1979 SCHEME. WE FURTHER NOTE I TA NO. 5233/DEL/2017 THAT THE TRIBUNAL IN ITA NO. 678 & 679/DEL/2012 IN THE CASE OF M/S INDO RAMA TEXTILES LTD. ON IDENTICAL FACTS HAS HELD THAT THE DECISION OF THE MUMBAI TRIBUNAL, SPECIAL BENCH IN THE CASE OF RELIA NCE 4 INDUSTRIES 88 ITD 273 IS APPLICABLE. ACCORDINGLY, I N THE BACKGROUND OF THE AFORESAID DISCUSSION AND PRECEDEN TS, WE HOLD THAT THE LD. CIT(A) HAS PASSED A REASONABLE ORDER WHICH DOES NOT NEED ANY- INTERFERENCE ON OUR PART. ACCORDINGLY, WE UPHOLD THE SAME.' 8. RESPECTFULLY FOLLOWING THE SAME WE DECLINE TO IN TERFERE. APPEAL BY THE REVENUE IS ACCORDINGLY DISMISSED. 6. RESPECTFULLY FOLLOWING THE SAME, WE ORDER ACCORD INGLY. 7. IN THE RESULT, THE APPEAL OF THE REVENUE IN ITA NO. 1915/DEL/2018 IS DISMISSED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 05.0 4.2021. SD/- SD/- [SUDHANSHU SRIVASTAVA ] [N.K. BILLAIYA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 05 TH APRIL, 2021 VL/ 5 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT ASST. REGISTRAR 4. CIT(A) ITAT, NEW DELHI 5. DR DATE OF DICTATION DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.PS /PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.PS/PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WE BSITE OF ITAT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER