M/S NARENDRA SOLVEX PVT. LTD., Mumbai V. ACIT, CENTRAL CIRCLE, 1(4), Nagpur

ITA 254/NAG/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 93435 (ITAT-NAGPUR)
• Duration Of Justice: 2 year(s) 1 month(s) 24 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: 06-06-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NARENDRA KANE
• Keywords: Capital receipt
• Section: 143(3); 153A; 234B

Judgement Text

1 ITA NO. 254 TO 260/ 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. 254/NAG/2013 2003 - 04 2. 255/NAG/2013 2004 - 05 3. 256/NAG/2013 2005 - 06 4. 257/NAG/2013 2006 - 07 5. 258/NAG/2013 2007 - 08 6. 259/NAG/2013 2008 - 09 7. 260/N AG/2013 2009 - 10. M/S NARENDRA SOLVE X PVT. LTD. ASSTT. COMMISSIONER OF 4 TH FLOOR, CENTRAL BUILDING NO. 3, V/S. INCOME TAX, MASTER BOMANJI LANE,KALBADEVI ROAD, CENTRAL CIRCLE - 1(4), MUMBAI - 400 002. NAGPUR. PAN AAACN3398M. 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 ASSESS EE EMANATING FROM A COMBINED ORDER OF LEARNED CIT(APPEALS) - I, NAGPUR DATED 5 TH APRIL , 2013 PERTAINING TO THE ASSESSMENT YEARS 2003 - 04 TO 2009 - 10. SINCE THESE APPEALS HAVE 2 ITA NO. 254 TO 260/ NAG/2013 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 2003 - 04, THE LEAD 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 ` . 63,09,188 / - 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 CAPITAL RECEIPT AT THE HANDS OF THE ASSESSEE. 3. THE LEARNED A.O. OUGHT TO HAVE ACCEPTED THE CLAIM OF ASSESSEE THAT SALES TAX INCE NTIVE AVAILED AT ` . 63,09,188 / - UNDER SCHEME OF INCENTIVE BY GOVERNMENT OF MAHARASHTRA IS CAPITAL RECEIPT AND NOT CHARGEABLE TO TAX. 4. THE ASSESSEE DENIES LIABILITY TO BE ASSESSED TO INTEREST U/S 234A, 234B 234C AND 234D OF THE I.T. ACT, 1961 WITHOUT PREJUDICE, THE LEVY OF INTEREST IS UNJUSTIFIED, UNWARRANTED AND EXCESSIVE. 3. ON IDENTICAL FACTS AND CIRCUMSTANCES WE HAVE TAKEN A VIEW IN A GROUP OF CASES OF M/S NARENDRA VEGETABLE PRODUCTS PVT. LTD. BEARING ITA NOS. 118 TO 124/N AG/2013 FOR ASSESSMENT YEARS 2003 - 04 TO 2009 - 10 VIDE ORDER EVEN DATED 31 ST JULY, 2015. FOLLOWING THE REASONS ASSIGNED IN THE SAID ORDER, WE HEREBY DECIDE GROUND NOS. 1,2 AND 3 IN FAVOUR OF THE ASSESSEE. GROUND NO. 4 IS CONSEQUENTIAL IN NATURE PERTAINING TO CHARGE OF INTEREST NEEDS NO ADJUDICATION PRESENTLY. RESULTANTLY, ALL THE APPEALS ARE ALLOWED. 3 ITA NO. 254 TO 260/ NAG/2013 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) ACCOUNTAN T 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 WAKODE ASSISTANT REGISTRAR, ITAT, NAGPUR