M/s Steel Strips Wheels Ltd., Chandigarh V. ACIT, Chandigarh

ITA 798/CHANDI/2009

• Counselvise Citation: 79821514 RSA 2009
• Duration Of Justice: 6 year(s) 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-10-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 30-09-2015
• Assessment Year: 2005-2006
• Appeal Filed On: 28-07-2009
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: VIVEK MONGIA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, CHANDIGARH BEFORE SHRI H.L.KARWA, VICE PRESIDENT AND MS. RANO JAIN, ACCOUNTANT MEMBER ITA NO.798/CHD/2009 ( ASSESSMENT YEAR : 2005-06) M/S STEEL STRIPS WHEELS LIMITED, VS. THE A.C.I.T., SCO 49-50, SECTOR 26, CIRCLE 5(1), CHANDIGARH. CHANDIGARH. PAN: AACCS3003L (APPELLANT) (RESPONDENT) APPELLANT BY : NONE RESPONDENT BY : SHRI VIVEK MONGIA, DR DATE OF HEARING : 30.09.2015 DATE OF PRONOUNCEMENT : .10.2015 O R D E R PER RANO JAIN, A.M . : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS), CHANDIGARH DATED 15.6.2009. 2. THE ASSESSEE HAS RAISED SIX GROUNDS OF APPEAL. DURING THE COURSE OF HEARING BEFORE US, THE LEARNED COUNSEL FOR THE ASSESSEE PREFERRED NOT TO PRESS GRO UND NOS.1 TO 3. THEREFORE, THE GROUND NOS.1 TO 3 ARE DISMISSED AS NOT PRESSED. 2 3. GROUND NO.4 RELATES TO DISALLOWANCE OF SALES TA X LIABILITY ON ACCOUNT OF SALES TAX EXEMPTION/SUBSIDY AMOUNTING TO RS.2,51,34,858/-. GROUND NOS. 5 AND 6 ARE CONSEQUENTIAL. THEREFORE, THE ONLY ISSUE IN THE P RESENT CASE IS WITH REGARD TO SALES TAX SUBSIDY. SIMILAR ISSUE WAS RAISED BEFORE THE CHANDIGARH BENCH OF I.T.A.T. IN ASSESSEES OWN CASE FOR ASSESSMENT YEARS 2003-04 AN D 2004-05, WHICH WAS DECIDED BY THE TRIBUNAL IN ITA NO.897/CHD/2006 AND ITA NO.341/CHD/2007 RESPECTIVEL Y, VIDE ORDER DATED 21.10.2015. THE RELEVANT FINDING OF THE TRIBUNAL READS AS UNDER : 11. IN THESE CASES, THE ASSESSES HAVE RECEIVED SALES TAX SUBSIDY FROM PUNJAB GOVERNMENT UNDER THE SCHEME NAMED, INDUSTRIAL POLICY & INCENTIVE CODE, 1996. WE HAVE GONE THROUGH THE SAID POLICY AND FOUND THAT THE SCHEME THOUGH NOT VERBATIM AS THAT OF WEST BENGAL OR GUJARAT SCHEMES, BUT THE SUM AND SUBSTANCE OF ALL THESE SCHEMES ARE THE SAME, THEREFORE, RELYING ON OUR FINDING GIVEN IN ITA NO.773/CHD/2012, WE HOLD THAT THE SALES TAX SUBSIDY RECEIVED BY THE ASSESSEE IS CAPITAL IN NATURE. 4. SINCE NO DISTINGUISHING FACTS WERE BROUGHT TO OUR NOTICE DURING THE COURSE OF HEARING, RESPECTFUL LY FOLLOWING THE ORDER OF THE I.T.A.T., CHANDIGARH BEN CH IN EARLIER YEARS IN ASSESSEES OWN CASE, WE ALLOW TH E GROUND 3 NO.4 RAISED BY THE ASSESSEE. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 28 TH DAY OF OCTOBER, 2015. (H.L.KARWA) (RANO JAIN) VICE PRESIDENT ACOUNTANT MEMBER DATED : 28 TH OCTOBER, 2015 *RATI* COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT(A)/TH E CIT/THE DR. ASSISTANT REGISTRAR, ITAT, CHANDIGARH