Rajshree Sugars & Chemicals Ltd., Coimbatore V. DCIT, Coimbatore

ITA 873/CHNY/2017

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 8019 (ITAT-CHENNAI)
• Duration Of Justice: 4 year(s) 10 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-02-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 09-04-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANN MARY BABY
• Assessee Lawyers: R. VARADHARAJAN
• Keywords: Capital receipt
• Section: 143(3)

Judgement Text

आयकर अपीलीय अिधकरण, ‘बी’ ᭠यायपीठ, चे᳖ई IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI Įी महावीर ͧसंह, उपाÚय¢ एवं Įी मनोज क ु मार अĒवाल, लेखा सदèय के सम¢ BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENTAND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.: 873/CHNY/2017 िनधाᭅरण वषᭅ /Assessment Years: 2012-13 M/s. Rajshree Sugars & Chemicas Ltd., “The Uffizi”, 338, Avinashi Road, Peelamedu, Coimbatore – 641 004. PAN: AABCR 4179D v. The DCIT, Corporate Circle – 2, Coimbatore. (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से/Appellant by : Shri R. Varadharajan ᮧ᭜यथᱮ कᳱ ओर से/Respondent by : Ms. Ann Mary Baby, CIT स ु नवाई कȧ तारȣख/Date of Hearing : 23.02.2022 घोषणा कȧ तारȣख/Date of Pronouncement : 25.02.2022 आदेश /O R D E R PER MAHAVIR SINGH, VP: This appeal by the assessee is arising out of the order of the Commissioner of Income Tax (Appeals)-1, Coimbatore in ITA Appeal No.350/14-15 dated 30.01.2017. The Assessment was framed by DCIT, Corporate Circle -2, Coimbatore U/s 143(3) of 2 I.T.A. No.873/Chny/2017 the Income Tax Act, 1961 (hereinafter ‘the Act’) for the A.Y. 2012-13 vide order dated 19.02.2015. 2. The only issue in this appeal of assessee is as regards to the order of CIT(A) rejecting the ground on the amount received towards carbon credit by excluding from the total income, as being in the nature of capital receipt, as the same has not claimed before the AO in the return of income but claimed the same during the course of assessment proceedings. For this, assessee has raised various grounds which we need not to reproduce. 3. We have heard rival contentions and gone through facts and circumstances of the case. We noted that during the course of assessment proceedings before the AO, the assessee claimed that it had received a sum of Rs.4,28,24,080/- during the year towards carbon credit under Clean Development Mechanism (CDM) and incurred expenditure of Rs.16,82,828/- by way of registration fee. The assessee claimed that the amount of Rs.4,28,24,080/- should be excluded from the total business proceeds as the receipt is in the nature of capital and not revenue. The AO assessed the same as business income. Aggrieved, assessee preferred appeal before CIT(A) and the 3 I.T.A. No.873/Chny/2017 CIT(A) also confirmed the action of the AO. Aggrieved, assessee is in appeal before the Tribunal. 4. We noted that this issue is covered in the favour of the assessee by the decision of Hon’ble High Court of Madras in the casea of S.P. Spinning Mills Pvt. Ltd. vs. ACIT, (2021) (1) TMI 1081 & CIT vs. Ambika Cotton Mills Ltd. [2021] 125 taxmann.com 206 and by the decision of Co-ordinate Bench of this Tribunal in assessee’s own case for the assessment year 2013-14 in ITA No.754/Chny/2018, order dated 13.02.2020. As the issue is squarely covered in assessee’s own case in ITA No. 754/Chny/2018, we consistently following the same allow this appeal of the assessee. 5. In the result, the appeal filed by the assessee is allowed. Order pronounced in the court on 25 th February, 2022 at Chennai. Sd/- Sd/- (मनोज कुमार अᮕवाल) (MANOJ KUMAR AGGARWAL) लेखा सद᭭य /ACCOUNTANT MEMBER (महावीर ᳲसह ) (MAHAVIR SINGH) उपा᭟यᭃ /VICE PRESIDENT चे᳖ई/Chennai, ᳰदनांक/Dated, the 25 th February, 2022 RSR आदेश कᳱ ᮧितिलिप अᮕेिषत/Copy to: 1. अपीलाथᱮ/Appellant 2. ᮧ᭜यथᱮ/Respondent 3. आयकर आयुᲦ (अपील)/CIT(A) 4. आयकर आयुᲦ /CIT 5. िवभागीय ᮧितिनिध/DR 6. गाडᭅ फाईल/GF.