Krishi Rasayan Exports Pvt. Ltd., Kolkata V. ACIT, Range-12, Kolkata, Kolkata

ITA 1953/KOL/2014

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 1736 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 6 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-05-2017
• Appeal Filed By: Assessee
• Bench Allotted: C
• Assessment Year: 2011-2012
• Appeal Filed On: 20-10-2014
• Court: TRIBUNAL
• Department Lawyers: GOUTEN HANGSHING
• Assessee Lawyers: S D VERMA
• Keywords: Business income; Capital receipt; Revised return
• Section: 14A; 115JB; 6

Judgement Text

I.T.A. NOS. 1953 & 1954/KOL./2014 ASSESSMENT YEARS: 2011-2012 & 2012-2013 & I.T.A. NOS. 2080 & 2081/KOL./2014 ASSESSMENT YEARS: 2011-2012 & 2012-201 3 PAGE 1 OF 9 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA A BENCH, KOLKATA BEFORE SHRI P.M. JAGTAP, ACCOUNTANT MEMBER AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER I.T.A. NOS. 1953 & 1954/KOL/ 2014 ASSESSMENT YEARS: 2011-2012 & 2012-2013 KRISHI RASAYAN EXPORTS PVT. LIMITED,............... ..........................APPELLANT 29, LALA LAJPATH RAI SARANI, KOLKATA-700 020 [PAN: AACCK 4124 G] -VS.- ADDITIONAL COMMISSIONER OF INCOME TAX,............. ......................RESPONDENT RANGE-12, AAYAKAR BHAWAN, KOLKATA-73 - A N D I.T.A. NOS. 2080 & 2081/KOL/ 2014 ASSESSMENT YEARS: 2011-2012 & 2012-2013 DEPUTY COMMISSIONER OF INCOME TAX,................. ..........................APPELLANT RANGE-12, KOLKATA, P-7, CHOWRINGHEE SQUARE, AAYAKAR BHAWAN, KOLKATA-700 069 -VS.- KRISHI RASYAN EXPORTS PVT. LIMITED,................ ............................RESPONDENT 29, LALA LAJPATH RAI SARANI, KOLKATA-700 020 [PAN: AACCK 4124 G] APPEARANCES BY: SHRI S.D. VERMA, ADVOCATE, FOR THE ASSESSEE SHRI GOUTEN HANGSHING, CIT, D.R., FOR THE DEPARTMEN T DATE OF CONCLUDING THE HEARING : APRIL 12, 2017 DATE OF PRONOUNCING THE ORDER : MAY 12, 2017 O R D E R PER SHRI P.M. JAGTAP, A.M. .: THESE FOUR APPEALS, TWO FILED BY THE ASSESSEE AND T WO FILED BY THE REVENUE, ARE CROSS APPEALS FOR ASSESSMENT YEARS 201 1-12 AND 2012-13 AND SINCE THE ISSUES INVOLVED THEREIN ARE COMMON, T HE SAME HAVE BEEN I.T.A. NOS. 1953 & 1954/KOL./2014 ASSESSMENT YEARS: 2011-2012 & 2012-2013 & I.T.A. NOS. 2080 & 2081/KOL./2014 ASSESSMENT YEARS: 2011-2012 & 2012-201 3 PAGE 2 OF 9 HEARD TOGETHER AND ARE BEING DISPOSED OF BY A SINGL E CONSOLIDATED ORDER FOR THE SAKE OF CONVENIENCE. 2. FIRST WE SHALL TAKE UP THE CROSS APPEALS FOR A.Y . 2011-12 BEING ITA NOS.1953/KOL/2014 AND 2080/KOL/2014, WHICH ARE DIRE CTED AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-X II, KOLKATA DATED 11.08.2014. 3. THE ASSESSEE IN THE PRESENT CASE IS A COMPANY, W HICH IS ENGAGED IN THE BUSINESS OF MANUFACTURING AND EXPORT OF INSECTI CIDES AND AGRO CHEMICALS. THE RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION, I.E. A.Y. 2011-12 WAS FILED BY IT ON 22.09.2011 DECLARING TOT AL INCOME OF RS.30,64,53,814/-. WHILE COMPUTING THE TOTAL INCOME OF THE ASSESSEE UNDER THE NORMAL PROVISIONS OF THE ACT AS WELL AS T HE BOOK PROFIT UNDER SECTION 115JB OF THE ACT VIDE AN ORDER DATED 26.03. 2013 PASSED UNDER SECTION 143(3), THE FOLLOWING ADDITIONS, INTER ALIA, WERE MADE BY THE ASSESSING OFFICER:- (I) DISALLOWANCE UNDER SECTION 14A READ WITH RULE 8D RS.8,12,886/ - (II) EXCISE DUTY REFUND RS.5,59,46,935/ - (III) INTEREST SUBSIDY RS.43,37,773/ - 4. AGAINST THE ORDER PASSED BY THE ASSESSING OFFICE R UNDER SECTION 143(3), AN APPEAL WAS PREFERRED BY THE ASSESSEE BEF ORE THE LD. CIT(APPEALS) DISPUTING THE AFORESAID ADDITIONS MADE BY THE ASSESSING OFFICER WHILE COMPUTING ITS BOOK PROFIT UNDER SECTI ON 115JB OF THE ACT AS WELL AS ITS BUSINESS INCOME UNDER THE NORMAL PROVIS IONS OF THE ACT. AFTER CONSIDERING THE SUBMISSIONS MADE BY THE ASSESSEE AS WELL AS THE MATERIAL AVAILABLE ON RECORD, THE LD. CIT(APPEALS) DELETED T HE ADDITIONS MADE BY THE ASSESSING OFFICER ON ACCOUNT OF EXCISE DUTY REF UND AND INTEREST SUBSIDY IN COMPUTING THE INCOME OF THE ASSESSEE UND ER THE NORMAL PROVISIONS OF THE ACT. HE, HOWEVER, CONFIRMED THE S AID TWO ADDITIONS I.T.A. NOS. 1953 & 1954/KOL./2014 ASSESSMENT YEARS: 2011-2012 & 2012-2013 & I.T.A. NOS. 2080 & 2081/KOL./2014 ASSESSMENT YEARS: 2011-2012 & 2012-201 3 PAGE 3 OF 9 MADE BY THE ASSESSING OFFICER WHILE COMPUTING THE B OOK PROFIT OF THE ASSESSEE-COMPANY UNDER SECTION 115JB OF THE ACT. HE ALSO CONFIRMED THE DISALLOWANCE MADE BY THE ASSESSING OFFICER UNDER SE CTION 14A READ WITH RULE 8D WHILE COMPUTING THE INCOME OF THE ASSESSEE UNDER THE NORMAL PROVISIONS OF THE ACT AND BOOK PROFIT UNDER SECTIO N 115JB OF THE ACT. 5. AGGRIEVED BY THE ORDER OF THE LD. CIT(APPEALS), THE ASSESSEE AND REVENUE ARE BOTH IN APPEAL BEFORE THE TRIBUNAL ON T HE FOLLOWING GROUNDS:- ITA NO. 1953/KOL/2014 (ASSESSEES APPEAL) (1)THAT THE LD. CIT(A)-XII, KOLKATA WAS NOT JUSTIF IED IN UPHOLDING THE ACTION OF THE LD. ADDITIONAL COMMISSI ONER OF INCOME TAX, RANGE-12, IN ADDING A SUM OF RS.8,12,88 6/- UNDER SECTION 14A READ WITH RULE 8D, FOR EXEMPT DIV IDEND INCOME OF RS.9,284/- WITHOUT CONSIDERING APPELLANT S SUBMISSIONS JUDICIALLY. (2) THAT THE LD. CIT(A)-XII, KOLKATA WAS NOT JUSTIF IED IN UPHOLDING THE ACTION OF THE LD. ADDITIONAL COMMISSI ONER OF INCOME TAX, RANGE-12, FOR ADDITION OF RS.5,59,46,53 5/- (BEING EXCISE DUTY REFUND) AND RS.43,37,773/- (BEIN G INTEREST SUBSIDY) IN COMPUTATION OF BOOK PROFITS UN DER SECTION 115JB WHEREAS BOTH THESE ITEMS H BEEN TREAT ED AS CAPITAL RECEIPTS NOT LIABLE TO INCOME TAX. (3) THE LD. AO HAS ACTED ARBITRARILY IN ADDING A SU M OF RS.8,12,886/- BEING DISALLOWANCE UNDER SECTION 14A WHILE COMPUTING BOOK PROFITS UNDER SECTION 115JB [CASE-GO ETZ INDIA LTD. VS.- CIT (2009) SOT 101 (DELHI). ITA NO. 2080/KOL/2014 (REVENUES APPEAL) THAT IS THE FACTS OF THE CASE, THE LD. CIT(A) ERR ED IN DELETING THE ADDITION ON ACCOUNT OF INTEREST SUBSID Y OF RS.43,37,773/- AND EXCISE DUTY REFUND OF RS.5,59,46 ,935/- BY REJECTING THE SAME AS REVENUE RECEIPT, RELYING H IS DECISION IN THE ASSESSEES OWN CASE FOR THE AY 2010 -11, WHICH IS PENDING BEFORE HONBLE ITAT. 6. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. AS REGARDS T HE ISSUE INVOLVED IN I.T.A. NOS. 1953 & 1954/KOL./2014 ASSESSMENT YEARS: 2011-2012 & 2012-2013 & I.T.A. NOS. 2080 & 2081/KOL./2014 ASSESSMENT YEARS: 2011-2012 & 2012-201 3 PAGE 4 OF 9 GROUND NO. 1 OF ASSESESES APPEAL RELATING TO DISAL LOWANCE MADE UNDER SECTION 14A READ WITH RULE 8D WHILE COMPUTING INCOM E OF THE ASSESSEE UNDER THE NORMAL PROVISIONS OF THE ACT, IT IS OBSER VED THAT A SIMILAR ISSUE WAS INVOLVED IN ASSESSEES OWN CASE FOR AY 2010-11 AND VIDE ITS ORDER DATED 08.03.2017 PASSED IN ITA NOS. 883/KOL/2014 & 1018/KOL/2014, THE SAME HAS ALREADY BEEN DECIDED BY THE COORDINATE BENCH OF THIS TRIBUNAL BY HOLDING THAT THE DISALLOWANCE UNDER SEC TION 14A READ WITH RULE 8D SHOULD BE RESTRICTED TO THE EXTENT OF EXEMP T INCOME VIDE PARAGRAPH NO. 29 OF ITS ORDER, WHICH READS AS UNDER :- 29. WE HAVE HEARD THE SUBMISSION OF THE LEARNED CO UNSEL FOR THE ASSESSEE. IT WAS BROUGHT TO OUR NOTICE THAT THE HON'BLE ITAT, KOLKATA IN THE CASE OF REI AGRO LTD. VS. DCIT 144 ITD 141 (KOL-TRIB) HAS HELD THAT IT IS ONLY THE INVESTMENTS WHICH YIELDS DIVIDEND DURING THE PREVIO US YEAR THAT HAS TO BE CONSIDERED WHILE ADOPTING THE AVERAG E VALUE OF INVESTMENTS FOR THE PURPOSE OF RULE 8D(2)(II) & (III) OF THE RULES. THE AFORESAID VIEW OF THE TRIBUNAL HAS S INCE BEEN AFFIRMED AS CORRECT BY THE HON'BLE CALCUTTA HI GH COURT IN G.A.NO.3581 OF 2013 IN THE APPEAL AGAINST THE ORDER OF THE TRIBUNAL IN THE CASE OF REI AGRO LTD. (SUPRA). IN THE LIGHT OF THE ADMITTED FACTUAL POSITION THAT THE ASSESSEE HAD EARNED DIVIDEND INCOME OF ONLY RS.8,44 0/- DURING THE PREVIOUS YEAR, WE ARE OF THE VIEW THAT T HERE CAN BE NO DISALLOWANCE U/S 14A OF THE ACT OF ANY SUM BE YOND RS.8,440/-. ACCORDINGLY THE ADDITION MADE U/S 14A O F THE ACT IS DIRECTED TO BE RESTRICTED TO THE EXTENT OF D IVIDEND INCOME OF RS.8,440/-. GR.NO.3 IS PARTLY ALLOWED. 7. AS THE ISSUE INVOLVED IN THE YEAR UNDER CONSIDER ATION AS WELL AS ALL THE MATERIAL FACTS RELEVANT THERETO ARE SIMILAR TO AY 2010-11, WE RESPECTFULLY FOLLOW THE DECISION OF THE COORDINATE BENCH OF THIS TRIBUNAL FOR A.Y. 2010-11 AND DIRECT THE ASSESSING OFFICER T O RESTRICT THE DISALLOWANCE UNDER SECTION 14A READ WITH RULE 8D TO THE EXTENT OF EXEMPT DIVIDEND INCOME. GROUND NO. 1 OF THE ASSESSEES APP EAL THUS IS PARTLY ALLOWED. 8. AS REGARDS THE ISSUE INVOLVED IN GROUND NO. 2 OF THE ASSESSEES APPEAL RELATING TO THE ADDITION MADE ON ACCOUNT OF EXCISE DUTY REFUND AND I.T.A. NOS. 1953 & 1954/KOL./2014 ASSESSMENT YEARS: 2011-2012 & 2012-2013 & I.T.A. NOS. 2080 & 2081/KOL./2014 ASSESSMENT YEARS: 2011-2012 & 2012-201 3 PAGE 5 OF 9 INTEREST SUBSIDY WHILE COMPUTING BOOK PROFIT UNDER SECTION 115JB OF THE ACT, IT IS OBSERVED THAT THIS ISSUE IS SQUARELY COV ERED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF THE COORDINATE BENCH OF THIS TRIBUNAL RENDERED VIDE ITS ORDER DATED 08.03.2017 (SUPRA) FO R A.Y. 2010-11, WHEREIN A SIMILAR ISSUE HAS ALREADY BEEN DECIDED BY THE TRIBUNAL IN FAVOUR OF THE ASSESSEE VIDE PARAGRAPH NO. 21 OF ITS ORDER, WHICH READS AS UNDER:- 21. THE ADMITTED FACTUAL AND LEGAL POSITION IN THE PRESENT CASE IS THAT SUBSIDIES IN QUESTION IS NOT I N THE NATURE OF INCOME. THEREFORE THEY CANNOT BE REGARDED AS INCOME EVEN FOR THE PURPOSE OF BOOK PROFITS U/S.115 JB OF THE ACT THOUGH CREDITED IN THE PROFIT AND LOSS ACCOUNT AND HAVE TO BE EXCLUDED FOR ARRIVING AT THE BOOK PROFITS U/S.115JB OF THE ACT. WE HOLD ACCORDIN GLY AND CONFIRM THE ORDER OF THE CIT(A) IN THIS REGARD. IN LIGHT OF THE AFORESAID DISCUSSION, WE ARE OF THE VI EW THAT THE SUBSIDIES IN QUESTION SHOULD BE EXCLUDED F OR THE PURPOSE OF DETERMINATION OF BOOK PROFITS U/S. 1 15JB OF THE ACT. WE HOLD ACCORDINGLY AND ALLOW GR.NO.1 RAISED BY THE ASSESSEE. 9. RESPECTFULLY FOLLOWING THE DECISION OF THE COORD INATE BENCH OF THIS TRIBUNAL IN ASSESSEES OWN CASE FOR AY 2010-11 ON A SIMILAR ISSUE, WE DIRECT THE ASSESSING OFFICER TO DELETE THE ADDITION MADE ON ACCOUNT OF EXCISE DUTY REFUND AND INTEREST SUBSIDY WHILE COMPU TING THE BOOK PROFIT OF THE ASSESSEE-COMPANY UNDER SECTION 115JB OF THE ACT AND ALLOW GROUND NO. 2 OF THE ASSESSEES APPEAL. 10. AS REGARDS THE ISSUE INVOLVED IN GROUND NO. 3 O F ASSESSEES APPEAL FOR A.Y. 2011-12 RELATING TO THE DISALLOWANCE MADE UNDER SECTION 14A READ WITH RULE 8D WHILE COMPUTING THE BOOK PROFIT O F THE ASSESSEE- COMPANY UNDER SECTION 115JB OF THE ACT, IT IS OBSER VED THAT THIS ISSUE IS CONSEQUENTIAL TO THE ISSUE INVOLVED IN GROUND NO. 1 OF THE ASSESSEES APPEAL FOR AY 2011-12, WHICH HAS BEEN DECIDED BY US IN THE FOREGOING PORTION OF THIS ORDER. FOLLOWING OUR CONCLUSION DRA WN IN AY 2011-12 ON THE SAID ISSUE, WE DIRECT THE ASSESSING OFFICER TO RESTRICT THE DISALLOWANCE I.T.A. NOS. 1953 & 1954/KOL./2014 ASSESSMENT YEARS: 2011-2012 & 2012-2013 & I.T.A. NOS. 2080 & 2081/KOL./2014 ASSESSMENT YEARS: 2011-2012 & 2012-201 3 PAGE 6 OF 9 UNDER SECTION 14A READ WITH RULE 8D TO THE EXTENT O F EXEMPT DIVIDEND INCOME. GROUND NO. 3 OF THE ASSESSEES APPEAL THUS IS PARTLY ALLOWED. 11. AS REGARDS THE REVENUES APPEAL FOR A.Y. 2011-1 2 BEING ITA NO. 2080/KOL/2014, IT IS OBSERVED THAT THE SOLITARY ISS UE INVOLVED THEREIN RELATING TO THE DELETION BY THE LD. CIT(APPEALS) OF THE ADDITION MADE BY THE ASSESSING OFFICER ON ACCOUNT OF INTEREST SUBSID Y AND EXCISE DUTY REFUND IN COMPUTING THE INCOME OF THE ASSESSEE UNDE R THE NORMAL PROVISIONS OF THE ACT IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY THE ORDER DATED 08.03.2017 (SUPRA) OF THE COORDINATE BE NCH OF THIS TRIBUNAL PASSED IN ASSESSEES OWN CASE FOR AY 2010-11, WHERE IN A SIMILAR ISSUE WAS DECIDED IN FAVOUR OF THE ASSESSEE VIDE PARAGRAP HS NO. 11 & 12 OF ITS ORDER, WHICH READ AS UNDER:- 11. THE CONCLUSION OF THE HON'BLE HIGH COURT IS TH AT THE EXCISE REFUND AND INTEREST SUBSIDY RECEIVED IN PURS UANCE OF NEW INDUSTRIAL POLICY OF THE GOVERNMENT HAVE TO BE CONSIDERED IN THE LIGHT OF THE OFFICE MEMORANDUM DT . 14TH JUNE, 2002, AND THE SAID OFFICE MEMORANDUM MAKES IT EXPLICIT THAT THE CONCESSIONS WERE GIVEN TO ACHIEVE TWIN OBJECTS VIZ., ACCELERATION OF INDUSTRIAL DEVELOPMEN T IN THE STATE OF JAMMU & KASHMIR AND GENERATION OF EMPLOYME NT IN THAT STATE. THE HON'BLE HIGH COURT FURTHER HELD THAT A CLOSE READING OF THE OFFICE MEMORANDUM AND THE AMENDMENTS INTRODUCED THERETO WITH PARA 3 OF CENTRA L EXCISE NOTIFICATION NOS. 56 AND 57, DT. 11 TH NOV., 2002, MAKES IT AMPLY CLEAR THAT THE GENERATION OF EMPLOYM ENT SO CONTEMPLATED WAS NOT CASUAL OR TEMPORARY BUT OF PERMANENT NATURE AND THE PARAMOUNT CONSIDERATION OF THE CENTRAL GOVERNMENT IN PROVIDING THE INCENTIVES TO N EW INDUSTRIAL UNITS AND SUBSTANTIAL EXPANSION OF THE E XISTING UNITS WAS GENERATION OF EMPLOYMENT THROUGH ACCELERA TION OF INDUSTRIAL DEVELOPMENT IN PUBLIC INTEREST. SUCH INCENTIVES, DESIGNED TO ACHIEVE A PUBLIC PURPOSE, C ANNOT BE CONSTRUED AS PRODUCTION OR OPERATIONAL INCENTIVES F OR THE BENEFIT OF ASSESSEES ALONE. IT WAS FURTHER HELD THA T MAKING OF ADDITIONAL PROVISION IN THE SCHEME THAT THE INCE NTIVES WOULD BE AVAILABLE TO THE ELIGIBLE INDUSTRIAL UNITS FROM THE DATE OF COMMENCEMENT OF COMMERCIAL PRODUCTION AND T HAT THESE ARE NOT TO BE ALLOWED FOR CREATION OF NEW ASS ETS CANNOT BE VIEWED IN ISOLATION TO TREAT THE INCENTIV ES AS PRODUCTION INCENTIVES. SUCH PROVISIONS ARE INTENDED TO I.T.A. NOS. 1953 & 1954/KOL./2014 ASSESSMENT YEARS: 2011-2012 & 2012-2013 & I.T.A. NOS. 2080 & 2081/KOL./2014 ASSESSMENT YEARS: 2011-2012 & 2012-201 3 PAGE 7 OF 9 ENSURE THAT THE INCENTIVES ARE MADE AVAILABLE ONLY TO THE BONA FIDE INDUSTRIAL UNITS SO THAT THE LARGER PUBLI C INTEREST OF ERADICATING UNEMPLOYMENT IS ACHIEVED. THE COURT FINALLY CONCLUDED THAT THE INCENTIVES RECEIVED BY WAY OF EX CISE DUTY REFUND AND INTEREST SUBSIDY ARE CAPITAL RECEIP TS IN THE HANDS OF THE ASSESSEE AND THEREFORE NOT CHARGEABLE TO TAX. 12. THE RATIO LAID DOWN IN THE AFORESAID DECISION I S SQUARELY APPLICABLE TO THE VERY SAME SUBSIDY RECEIV ED UNDER THE VERY SAME SCHEME OF STATE OF JAMMU & KASH MIR BY THE ASSESSEE IN THE PRESENT CASE. WE THEREFORE F IND NO GROUNDS TO INTERFERE WITH THE CONCLUSIONS OF THE CI T(A). THE GRIEVANCE OF THE REVENUE IN GROUND NO.2 REGARDI NG THE REVISED RETURN OF INCOME IS NOT VALID AND HAS RIGHT LY HELD BY THE CIT(A) THE SAID REVISED RETURN OF INCOME WAS VALID U/S.139(5) OF THE ACT AND WAS ACTED UPON BY THE AO. IN THESE CIRCUMSTANCES, WE FIND NO MERIT IN GROUND NO. 2 RAISED BY THE REVENUE. 12. RESPECTFULLY FOLLOWING THE ORDER OF THE TRIBUNA L DATED 08.03.2017 (SUPRA) IN ASSESSEES OWN CASE FOR A.Y. 2010-11 ON A SIMILAR ISSUE, WE UPHOLD THE IMPUGNED ORDER OF THE LD. CIT(APPEALS) G IVING RELIEF TO THE ASSESSEE ON THIS ISSUE AND DISMISS THE APPEAL OF TH E REVENUE FOR A.Y. 2011-12. 13. NOW WE TAKE UP CROSS APPEALS FOR AY 2012-13 IN ITA NO. 1954/KOL/2014 (ASSESSEES APPEAL) AND ITA NO. 2081/ KOL/2014 (REVENUES APPEAL), WHICH ARE DIRECTED AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-XII, KOLKATA D ATED 11.08.2014. 14. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND PER USING THE RELEVANT MATERIAL AVAILABLE ON RECORD, IT IS OBSERVED THAT T HE ISSUE INVOLVED IN GROUND NO. 1 OF THE ASSESSEES APPEAL FOR AY 2012-1 3 RELATING TO THE DISALLOWANCE MADE UNDER SECTION 14A READ WITH RULE 8D IN COMPUTING THE INCOME OF THE ASSESSEE UNDER THE NORMAL PROVISIONS OF THE ACT IS SIMILAR TO THE ONE INVOLVED IN GROUND NO. 1 OF THE ASSESSEE S APPEAL FOR AY 2011- 12, WHICH HAS ALREADY BEEN DECIDED BY US IN THE FOR EGOING PORTION OF THIS ORDER. FOLLOWING OUR CONCLUSION DRAWN IN AY 2011-12 ON THE SIMILAR I.T.A. NOS. 1953 & 1954/KOL./2014 ASSESSMENT YEARS: 2011-2012 & 2012-2013 & I.T.A. NOS. 2080 & 2081/KOL./2014 ASSESSMENT YEARS: 2011-2012 & 2012-201 3 PAGE 8 OF 9 ISSUE, WE DIRECT THE ASSESSING OFFICER TO RESTRICT THE DISALLOWANCE UNDER SECTION 14A READ WITH RULE 8D TO THE EXTENT OF EXEM PT DIVIDEND INCOME EARNED BY THE ASSESSEE. 15. AS REGARDS THE ISSUE INVOLVED IN GROUND NO. 2 O F THE ASSESSEES APPEAL FOR AY 2012-13 RELATING TO THE ADDITION MADE ON ACCOUNT OF EXCISE DUTY REFUND AND INTEREST SUBSIDY WHILE COMPUTING BO OK PROFIT UNDER SECTION 115JB OF THE ACT, IT IS OBSERVED THAT THIS ISSUE IS ALSO SIMILAR TO THE ISSUE INVOLVED IN GROUND NO. 2 OF THE ASSESSEE S APPEAL FOR AY 2011- 12, WHICH HAS ALREADY BEEN DECIDED BY US IN THE FOR EGOING PORTION OF THIS ORDER. FOLLOWING OUR CONCLUSION DRAWN IN AY 2011-12 ON THE SIMILAR ISSUE, WE DELETE THE ADDITION MADE BY THE ASSESSING OFFICER ON ACCOUNT OF EXCISE DUTY REFUND AND INTEREST SUBSIDY WHILE COMPU TING THE BOOK PROFIT UNDER SECTION 115JB AND ALLOW GROUND NO. 2 OF THE A SSESSEES APPEAL. 16. AS REGARDS THE ISSUE INVOLVED IN GROUND NO. 3 O F ASSESSEES APPEAL FOR A.Y. 2012-13 RELATING TO THE DISALLOWANCE MADE UNDER SECTION 14A READ WITH RULE 8D WHILE COMPUTING THE BOOK PROFIT O F THE ASSESSEE- COMPANY UNDER SECTION 115JB OF THE ACT, IT IS OBSER VED THAT THIS ISSUE IS CONSEQUENTIAL TO THE ISSUE INVOLVED IN GROUND NO. 1 OF THE ASSESSEES APPEAL FOR AY 2012-13, WHICH HAS BEEN DECIDED BY US IN THE FOREGOING PORTION OF THIS ORDER. FOLLOWING OUR CONCLUSION DRA WN IN AY 2012-13 ON THE SAID ISSUE, WE DIRECT THE ASSESSING OFFICER TO RESTRICT THE DISALLOWANCE UNDER SECTION 14A READ WITH RULE 8D TO THE EXTENT O F EXEMPT DIVIDEND INCOME. GROUND NO. 3 OF THE ASSESSEES APPEAL THUS IS PARTLY ALLOWED. 17. AS REGARDS THE ONLY ISSUE INVOLVED IN REVENUES APPEAL FOR AY 2012- 13 RELATING TO THE DELETION BY THE LD. CIT(APPEALS) OF THE ADDITION MADE BY THE ASSESSING OFFICER ON ACCOUNT OF INTEREST SUB SIDY AND EXCISE DUTY REFUND IN COMPUTING THE INCOME OF THE ASSESSEE UNDE R THE NORMAL PROVISIONS OF THE ACT, IT IS OBSERVED THAT THIS ISS UE IS ALSO SIMILAR TO THE SOLITARY ISSUE INVOLVED IN THE REVENUES APPEAL FOR AY 2011-12, WHICH HAS I.T.A. NOS. 1953 & 1954/KOL./2014 ASSESSMENT YEARS: 2011-2012 & 2012-2013 & I.T.A. NOS. 2080 & 2081/KOL./2014 ASSESSMENT YEARS: 2011-2012 & 2012-201 3 PAGE 9 OF 9 ALREADY BEEN DECIDED BY US IN THE FOREGOING PORTION OF THIS ORDER. FOLLOWING OUR CONCLUSION DRAWN IN AY 2011-12 ON THE SIMILAR ISSUE, WE DIRECT THE ASSESSING OFFICER TO DELETE THE ADDITION S MADE ON ACCOUNT OF EXCISE DUTY REFUND AND INTEREST SUBSIDY WHILE COMPU TING THE INCOME OF THE ASSESSEE-COMPANY UNDER THE NORMAL PROVISIONS OF THE ACT AND DISMISS THE APPEAL FILED BY THE REVENUE. 18. IN THE RESULT, THE APPEALS OF THE ASSESSEE BEIN G ITA NO.1953/KOL/2014 & 1954/KOL/2014 ARE PARTLY ALLOWED , WHILE THE APPEALS OF THE REVENUE BEING ITA NO. 2080/KOL/2014 & 2081/KOL/2014 ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON MAY 12, 2017. SD/- SD/- (S.S. VISWANETHRA RAVI) (P.M. JAGTAP) JUDICIAL MEMBER ACCOUNTANT ME MBER KOLKATA, THE 12 TH DAY OF MAY, 2017 COPIES TO : (1) KRISHI RASAYAN EXPORTS PVT. LIMITED, 29, LALA LAJPATH RAI SARANI, KOLKATA-700 020 (2) ADDITIONAL COMMISSIONER OF INCOME TAX, RANGE-12, AAYAKAR BHAWAN, KOLKATA-73 (3) DEPUTY COMMISSIONER OF INCOME TAX, RANGE-12, KOLKATA, P-7, CHOWRINGHEE SQUARE, AAYAKAR BHAWAN, KOLKATA-700 069 (4) COMMISSIONER OF INCOME TAX(APPEALS)-XII, KOLK ATA; (5) COMMISSIONER OF INCOME TAX ,KOLKAT A (6) THE DEPARTMENTAL REPRESENTATIVE (7) GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY, HEAD OF OFFICE/DDO INCOME TAX APPELLATE TRIBUNAL, KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.