DCIT 4(2)(2), MUMBAI V. HARINAGAR SUGAR MILLS LTD., MUMBAI

ITA 5311/MUM/2016

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 7287 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 8 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-05-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2013-2014
• Appeal Filed On: 29-08-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SAURABH DESH
• Assessee Lawyers: JAYESH DESAI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL I BENCH, MUMBAI BEFORE S/ SHRI B.R.BASKARAN (AM) & AMARJIT SINGH (JM) I.T.A. NO. 5311 /MUM /20 1 6 (ASSESSMENT YEAR 20 13 - 14 ) DCIT 4(2)(2) ROOM NO. 640 AAYAKAR BHAVAN M.K. ROAD MUMBAI - 400 020. VS. M/S. HARAINAGAR SU GAR MILLS LTD. WORLD TRADE CENTRE NO. 1, 10 TH FLOOR CUFFE PARADE, COLABA MUMBAI - 400 005. PAN :AACH2831H ( APPELLANT ) ( RESPONDENT ) ASSESSEE BY SHRI JAYESH DESAI DEPARTMENT BY SHRI SAURABH DESHPANDE DATE OF HEARING 2 . 5 . 201 8 DATE OF PRONOUNCEM ENT 2 . 5 . 201 8 O R D E R PER B.R. BASKARAN (A M) : - THE APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 16.6.2016 PASSED BY THE LEARNED CIT(A) - 9, MUMBAI AND IT RELATES TO A.Y. 2013 - 14. THE REVENUE IS AGGRIEVED BY THE DECISION OF THE LEARNED CIT(A) IN HOLDING THAT THE SUBSIDY RECEIVED BY THE ASSESSEE UNDER BIHAR INCENTIVE PACKAGE SCHEME IS CAPITAL IN NATURE AND IS NOT REQUIRED TO BE DEDUCTED FROM THE COST /WDV OF PLANT AND MACHINERY. 2. AT THE TIME OF HEARING, BOTH THE PARTIES ACCEPTE D THE FACT THAT THIS ISSUE HAS ALREADY BEEN DECIDED BY THE COORDINATE BENCH OF THE TRIBUNAL IN ASSESSEES OWN CASE RELATING TO A.Y. 2008 - 09 IN ITA NO. 772/MUM/2012 DATED 31.1.2014, IN FAVOUR OF THE ASSESSEE HOLDING THAT THE CAPITAL SUBSIDY RECEIVED BY THE ASSESSEE UNDER BIHAR INCENTIVE PACKAGE SCHEME CANNOT BE DEDUCTED FROM WDV OF THE PLANT AND MACHINERY. THE O RDER SO PASSED BY THE TRIBUNAL FOR A.Y. 2008 - 09 HAS SINCE BEEN UPHELD BY THE HON'BLE BOMBAY HIGH COURT, VIDE ITS ORDER DATED 4.1.2017, PASSED IN INCO ME TAX APPEAL NO. 1132 OF 2014. M/S. HARAINAGAR SUGAR MILLS LTD. 2 3. WE NOTICED THAT THE LEARNED CIT(A) HAS FOLLOWED THE DECISION RENDERED BY THE COORDINATE BENCH IN ASSESSEES OWN CASE FOR A.Y. 2008 - 09 AND 2009 - 10, FOR DECIDING THIS ISSUE IN FAVOUR OF THE ASSESSEE. SINCE THE ORDER PASSED BY THE TRIBUNAL IN A.Y. 2008 - 09 HAS BEEN UPHELD BY HON'BLE BOMBAY HIGH COURT , WE DO NOT FIND ANY REASON TO INTERFERE WITH THE ORDER PASSED BY THE LEARNED CIT(A) ON THIS ISSUE. 4. IN THE RESULT, APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER HAS BE E N PRONOUNCED IN THE COURT ON 2 . 5 .201 8 . SD/ - SD/ - (AMARJIT SINGH ) ( B.R. BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED : 2 / 5 / 20 1 8 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// ( SENIOR PRIVATE SECRETARY ) PS ITAT, MUMBAI