The Assistant Commissioner of Incomet-ax, Amritsar. V. The Tarn Taran Co-operative Sugar Mills Ltd, Tarn Taran

ITA 446/ASR/2014

• Counselvise Citation: 44620914 RSA 2014
• Duration Of Justice: 1 year(s) 1 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-08-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 09-06-2015
• Assessment Year: 2003-2004
• Appeal Filed On: 08-07-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: TARSEM LAL
• Assessee Lawyers: PADAM BAHL
• Keywords: Capital receipt
• Section: 143(3)

Judgement Text

I.T.A. NO. 446 /ASR/201 4 ASSESSMENT YEAR: 20 03 - 04 PAGE 1 OF 2 IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR [CORAM: PRAMOD KUMAR AM AND A.D. JAIN JM] I.T.A. NO. 446 /ASR/201 4 ASSESSMENT YEAR: 2 003 - 04 ASSTT. COMMISSIONER OF INCOME TAX . .APPELLANT AMRAITSAR. VS. THE TARN TARAN CO - OPERATIVE SUGAR MILLS LTD. RESPONDENT TARN TARAN . [ PAN: AA ALT 0111 D ] APPEARANCES BY: TARSEM LAL FOR THE APPELLANT PADAM BAHL FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING: JUNE 9 , 2015 DATE OF PRONOUNCING THE ORDER : AUGUST 31 , 2015 O R D E R PER PRAMOD KUMAR: 1. BY WAY OF THIS APPEAL, THE ASSESSING OFFICER HAS CHALLENGED CORRECTNESS OF THE ORDER DATED 3 RD APRIL, 2014 PASSED BY THE LEARNED CIT(A) IN THE MATTER OF ASSESSMENT UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 ( THE A CT ) , FOR THE AS SESSMENT YEAR 20 03 - 04 , ON THE FOLLOWING GROUNDS: 1 . WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LD. CIT(A) IS JUSTIFIED IN IGNORING THAT THE DECISION OF THE HON BLE ITAT BENCH AMRITSAR IN THE CASE OF M/S THE GURDASPUR CO - OP SUGAR MILLS IN ITA NO.344(ASR)/2008 DATED 31.12.2008 WHEREIN THE HON BLE BENCH UPHELD THAT GRANT IN AID IS A REVENUE RECEIPT NOT A CAPITAL RECEIPT. 2. THE LD. CIT(A) FAILS TO APPRECIATE THAT THE ASSESSEE HIMSELF HAD TREATED A COMPONENT OF THE G R ANT - IN - AID AS ITS PROFIT FOR THE YEAR UNDER CONSIDERATION ON ACCOUNT OF CESSATION OF LIABILITIES U/S 41(1) OF THE INCOME TAX I.T.A. NO. 446 /ASR/201 4 ASSESSMENT YEAR: 20 03 - 04 PAGE 2 OF 2 ACT, 1961 AND AS SUCH BY THE STRETCH OF IMAGINATION THE GRANT - IN - AID COULD BE HELD AS CAPITAL RECEIPTS. 3 . WHETHER ON THE FACTS AND IN THE CIRCUMS TANCES OF THE CASE THE LD. CIT(A) IS JUSTIFIED THAT THE GRANT IN AID WAS GIVEN WITH A VIEW FOR SMOOTH RUNNING OF THE BUSINESS CONSTITUTES A REVENUE RECEIPT AND NOT A CAPITAL RECEIPT AND REPLENISHING THE ASSETS OF THE MILLS IS NOT FOR BUYING A NY CAPI T AL. 2. W E HAVE HEARD THE LEARNED REPRESENTATIVES, PERUSED THE MATERIAL ON RECORD AND DULY CONSIDERED FACTS OF THE CASE IN THE LIGHT OF THE APPLICABLE LEGAL POSITION. 3. LEARNED REPRESENTATIVE S FAIRLY AGREE THAT THE ISSUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSE E BY ORDER 8 TH MAY, 2012 OF THIS VERY BENCH IN ITA NO.543/ASR/2011 IN THE CASE OF DCIT VS. GURDASPUR CO - OP. SUGAR MILLS , EVEN AS THE LD. DEPARTMENTAL REPRESENTATIVE RELIE S UPON THE STAND OF THE ASSESSING OFFICER. 4. RESPECTFULLY FOLLOWING THE ABO VE DECISION IN THE CASE OF DCIT VS. GURDASPUR CO - OP SUGAR MILLS (SUPRA) , WE CONFIRM THE ORDER OF THE LD. CIT(A) ON THIS ISSUE AND DECLINE TO INTERFERE IN THE MATTER. 5 . IN THE RESULT, APPEAL IS DISMISSED. PRONOUNCED IN THE OPEN COURT TODAY ON 31 ST DAY OF AUGUST, 2015. SD/XX SD/XX A D JAIN PRAMOD KUMAR ( JUDICIAL MEMBER) (ACCOUNTANT MEMBER) DATED: THE 31 ST DAY OF AUGUST 2015 COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) COMMISSIONER (4) CIT(A) (5) D R (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR