DCIT, CC-II, KOLKATA, Kolkata V. Corporate Ispat Alloys Ltd., Kolkata

ITSSA 105/KOL/2014

• Counselvise Citation: [2017] 122 COUNSELVISE.COM (IT) 2902 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 7 month(s) 19 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 25-01-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 21-11-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 05-06-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation; Search and seizure; Additional depreciation; Capital receipt; Revised return
• Section: 143(3); 153A; 132; 139

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH B KOLKATA BEFORE SHRI P.M.JAGTAP, ACCOUNTANT MEMBER AND SHRI S.S.VISWANETHRA RAVI, JUDICIAL MEMBER IT(SS)A NO.105/KOL/2014 ASSESSMENT YEAR:2008-09 DCIT,CC-II, AAYAKAR BHAWAN (POORVA), 110, SHANTIPALLY, KOLKATA-107 / V/S . CORPORATE ISPAT ALLOYS LTD. EN-1, INSIGNIA TOWER, SECTOR-V, KOLKATA-91 [ PAN NO.AAACC 8109 R ] /APPELLANT .. /RESPONDENT /BY APPELLANT SHRI ANAND KUMAR KEDIA, CIT-DR /BY RESPONDENT NONE /DATE OF HEARING 05-01-2017 /DATE OF PRONOUNCEMENT 25-01-2017 /O R D E R PER S.S.VISWANETHRA RAVI, JUDICIAL MEMBER:- THIS APPEAL BY THE REVENUE AGAINST THE ORDER DATED 27.03.2014 PASSED BY COMMISSIONER OF INCOME TAX (APPEALS)-III, KOLKATA F OR ASSESSMENT YEAR 2007-08. 2. NONE APPEARED ON BEHALF OF ASSESSEE / RESPONDENT AT THE TIME OF HEARING AND AFTER HEARING THE LD. DR AND PERUSING THE MATERIALS AVAILABLE ON RECORD, WE CONSIDER IT FIT TO PROCEED AND HEAR THE APPEAL IN THE ABSENCE O F ASSESSEE. 3. ONLY ISSUE IS TO BE DECIDED IN THIS APPEAL IS A S TO WHETHER CIT(A) IS JUSTIFIED IN TREATING THE INCENTIVE RECEIVED FROM GOVERNMENT OF WEST BENGAL UNDER THE WEST IT(SS)A NO.105/KOL/2014 A.Y. 2008-09 DCIT, CC-II VS. CORPORATE ISPAT ALLOYS LTD. PAGE 2 BENGAL INCENTIVE SCHEME 1993 DATED 22.69.1993 AS RE VENUE RECEIPT IN THE FACTS AND CIRCUMSTANCES OF THE CASE. 4. THE ASSESSEE IS A COMPANY INVOLVED IN THE MANUFA CTURING AND SALE OF FERRO ALLOYS. THE ASSESSEE FILED ITS RETURN OF INCOME ON 29.09.2008 DECLARING TOTAL INCOME AT NIL. THEREAFTER REVISED RETURN WAS FILED ON 20.11.2 009 DECLARING TOTAL INCOME 30,09,98,779/- AND THE JCIT NAGPUR, BEING ASSESSING OFFICER, HAVING JURISDICTION MADE DISALLOWANCES TREATING SALES TAX INCENTIVE OF 97,11,395/- AS CAPITAL RECEIPT, ADDITIONAL DEPRECIATION TO THE EXTENT OF 4,63,743/- AND AMOUNT OF 1,99,82,046/- U/S. 40(A)(IA) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) AND TO THAT EFFECT AN ORDER U/S 143(3) OF THE ACT WAS PASSED ON 30.12.2010. 5. AGAINST WHICH, ASSESSEE PREFERRED AN APPEAL BEFO RE CIT(A) NAGPUR AGAINST THE DISALLOWANCE MADE TREATING THE INCENTIVE AS CAPITAL RECEIPT AND DID NOT PREFER ANY GROUNDS ON THE OTHER DISALLOWANCES. AS MATTER STOOD THUS A SEARCH AND SEIZURE OPERATION WAS CONDUCTED IN ABHIJIT GROUP OF CASES U /S 132 OF THE ACT ON 18.01.2011 IN WHICH ASSESSEE IS A GROUP COMPANY AND IN ACCORDA NCE WITH PROCEDURE AS CONTEMPLATED U/S 153A OF THE ACT NOTICE WAS ISSUED WHEREIN ASSESSEE FILED RETURN AMOUNTS INCLUDING THE OTHER TWO DISALLOWANCE AS MAD E BY THE ASSESSING OFFICER UNDER THE ORIGINAL ASSESSMENT TOWARDS I.E ADDITIONAL DEPR ECIATION AND DISALLOWANCE U/S. 40(A)(IA) OF THE ACT. ACCORDING TO AO THE INCOME DE CLARED U/S. 153A OF THE ACT ARE ABOVE TO THE INCOME AS DECLARED ORIGINALLY U/S. 139 OF THE ACT. THEREBY THE TOTAL INCOME ASSESSEE WAS DETERMINED AT 33,04,05,075/- AND TO THE EFFECT U/S 153A/143(3) OF THE ACT WAS PASSED ON 30.03.2013. 6. AGGRIEVED, ASSESSEE FILED THE APPEAL BEFORE CIT( A) OF WHICH IMPUGNED ORDER BEFORE US BY REVENUE. 7. CIT(A) ALLOWED THE APPEAL FILED BY ASSESSEE BY O BSERVING THAT THE APPEAL FILED AGAINST THE ORIGINAL ASSESSMENT ORDER BEFORE CIT(A) NAGPUR WAS ALLOWED BY RELYING ON THE ORDER OF CO-ORDINATE BENCH OF NAGPUR IN ASSE SSEES OWN CASE FOR ASSESSMENT IT(SS)A NO.105/KOL/2014 A.Y. 2008-09 DCIT, CC-II VS. CORPORATE ISPAT ALLOYS LTD. PAGE 3 YEARS 2006-07 AND 2007-08 TREATING THE INCENTIVE AS GRANT BY GOVERNMENT OF WEST BENGAL AS REVENUE RECEIPT. 8. HEARD LD. DR AND PERUSED THE MATERIAL ON RECORD. WE FIND THAT CO-ORDINATE BENCH OF NAGPUR HAVING JURISDICTION FOR AYS 2006-07 AND 2007-08 HELD THAT THE INCENTIVES RECEIVED FROM GOVERNMENT OF WEST BENGAL UNDER THE WEST BENGAL INCENTIVE SCHEME, 1993 FOR SETTING UP INDUSTRIES IN THE SPECIFIED ZONES IS A REVENUE RECEIPT AND CIT EXAMINED THE ISSUE AND BY RELYING O N THE ORDER OF CO-ORDINATE BENCH NAGPUR IN ITA NO.179/NAG/2009 AND 64/NAG/2011 FOR A .YS 2006-07 AND 2007-08 HELD THE RECEIPT TO THE EXTENT OF 97,11,395/- FROM THE GOVT. OF WEST BENGAL AS REVENUE RECEIPT. IN VIEW OF THE SAME, WE HOLD THAT 97,11,395/- IS A REVENUE RECEIPT AND WE FIND NO MERIT IN THE GROUND RAISED BY REVENU E IN THIS APPEAL AND THE ORDER OF CIT(A) IS JUSTIFIED AND UPHOLD THE SAME. 9. IN THE RESULT, REVENUES APPEAL STANDS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 25/01/2017 SD/- SD/- ( ! ) (# $ ! ) (P.M.JAGTAP) (S.S.VISWANETHRA RAVI) ACCOUNTANT MEMBER JUDICIAL MEMBER *DKP-SR.PS % &' - 25/01/2017 / KOLKATA / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-DCIT, CC-II, AAYAKAR BHAWAN (POORVA) 110 , SHANTIPALL Y, KOLKATA-107 2. /RESPONDENT-CORPORATE ISPAT ALLOYS LTD. EN-1, INSIG NIA TOWER, SECTOR-V KOLKATA-91 3. &&() + / CONCERNED CIT 4. + - / CIT (A) 5. ,-. $$() , () / DR, ITAT, KOLKATA 6. ./0 / GUARD FILE. BY ORD ER/ , /TRUE COPY/ / & (),