The Dy. Commissioner of Income-tax, Amritsar. V. M/s. J&K Small Scale Industries, Jammu

ITA 478/ASR/2011

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 7705 (ITAT-AMRITSAR)
• Duration Of Justice: 10 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-07-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 25-07-2012
• Assessment Year: 2006-2007
• Appeal Filed On: 07-09-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R L CHHANALIA
• Keywords: Capital receipt

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH; AMRITSAR. BEFORE SH. H.S. SIDHU, JUDICIAL MEMBER AND SH. B.P.JAIN, ACCOUNTANT MEMBER I.T.A. NO.478(ASR)/2011 ASSESSMENT YEAR:2006-07 PAN :AATJ0676M THE DY. COMMR. OF INCOME-TAX, VS. M/S. J & K SMAL L SCALE INDUSTRIES, CIRCLE-1, JAMMU. DEVELOPMENT CORPN. LTD. JAMMU. (APPELLANT) (RESPONDENT) APPELLANT BY:SH. R.L. CHHANALIA, DR RESPONDENT BY:SH. R.K. GUPTA, CA DATE OF HEARING:25/07/2012 DATE OF PRONOUNCEMENT:27/07/2012 ORDER PER BENCH ; THE REVENUE HAS FILED THE PRESENT APPEAL AGAINST T HE ORDER OF THE CIT(A), JAMMU, DATED 21.06.2011 FOR THE ASSESSMENT YEAR 2006-07 ON THE FOLLOWING GROUNDS: 1. ON THE FACTS AND CIRCUMSTANCES WHETHER THE LD. CIT(A) WAS RIGHT IN TREATING GRANT IN AIDS AS CAPITAL RECEIPTS WHEN THE SAME WERE MEANT FOR THE DEVELOPMENT OF INDUSTRIAL ESTATE S AND NOT FOR SETTING UP OF NEW BUSINESS UNITS. ITA NO.478(ASR)/2011 2 2. ON THE FACTS AND CIRCUMSTANCES WHETHER THE LD. C IT(A) WAS RIGHT IN LAW IN NOT APPRECIATING THE JUDGMENTS OF HONBLE SUPREME COURT OF INDIA IN THE CASE OF SAWHNEY STEEL AND PRESS WORKS LTD; WHEREIN THE HONBLE SUPREME COURT HAD HE LD SUCH RECEIPTS TO BE THE REVENUE RECEIPTS IN AS MUCH AS I N THAT CASE PAYMENTS WERE MADE ONLY AFTER THE INDUSTRIES HAD BE EN SET UP AND PAYMENTS WERE NOT MADE FOR PURPOSE OF SETTING U P NEW INDUSTRIES. 2. THE FACTS NARRATED BY THE REVENUE ARE NOT DISPUT ED BY BOTH THE PARTIES. THEREFORE, THERE IS NO NEED TO REPEAT THE SAME FOR THE SAKE OF CONVENIENCE. 3. AT THE TIME OF HEARING BOTH THE PARTIES AGREED T HAT THE ISSUE INVOLVED IN THE PRESENT APPEAL RAISED BY THE REVENUE, HAS AL READY BEEN ADJUDICATED AND DECIDED IN FAVOUR OF THE ASSESSEE BY THE LD. CIT(A) IN ASSESSEES OWN CASE FOR THE ASSESSMENT YEARS 1997-98 AND 2004-05. IT WAS FURTHER STATED THAT THE REVENUE HAS NOT FILED THE APPEAL AGAINST THE OR DER OF THE LD. CIT(A) IN THE SAID ASSESSMENT YEARS. 4. KEEPING IN VIEW THE STATEMENT MADE BY BOTH THE P ARTIES, WE ARE OF THE VIEW THAT THE REVENUE HAS ACCEPTED THE DECISION REN DERED BY THE LD. CIT(A), IN THE CASE OF THE ASSESSEE FOR THE ASSESSMENT YEAR S 1997-98 & 2004-05. IN THE ASSESSMENT YEAR UNDER APPEAL, NO REASON HAS BEE N POINTED OUT BY THE LD. ITA NO.478(ASR)/2011 3 DR FOR DISAGREEING WITH THE DECISION RENDERED BY T HE LD. CIT(A) FOR THE ASSESSMENT YEARS 1997-98 & 2004-05. THEREFORE, THE PRESENT APPEAL FILED BY THE REVENUE IS DISMISSED. 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 27TH JULY, 2012. SD/- SD/- (B.P. JAIN) (H.S. SIDHU) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 27TH JULY, 2012 /SKR/ COPY OF THE ORDER FORWARDED TO: 1. THE ASSESSEE:M/S. J & K SMALL SCALE INDUSTRIES, DEV ELOPMENT CORPN. LTD. JAMMU. 2. THE DCIT, CIR.1, JAMMU. 3. THE CIT(A) 4. THE CIT 5. THE SR DR, ITAT, AMRITSAR. TRUE COPY BY ORDER (ASSISTANT REGISTRAR) INCOME TAX APPELLATE TRIBUNAL, AMRITSAR BENCH: AMRITSAR.