Gujarat Flurochemicals Limited, Baroda V. The DCIT, Circle-1(1)(1), Baroda

MA 229/AHD/2019

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 8381 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 month(s) 15 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 10-10-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2010-2011
• Appeal Filed On: 26-07-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Capital receipt

Judgement Text

, - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH D BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER MISC. APPLICATION NO.229/AHD/2019 IN ./ ITA NO. 116/AHD/2016 / ASSESSMENT YEAR: 2010-11 GUJARAT FLUOROCHEMIALS LTD. 2 ND FLOOR, ABS TOWER OLD PADRA ROAD BARODA 390 007 PAN : AAACG 6725 H VS DCIT, CIR.1(1)(1) VADODARA. / (APPELLANT) / (RESPONDENT) ASSESSEE BY : MS.URVASHI SHODHAN, AR REVENUE BY : SHRI SATISH SOLANKI, SR.DR / DATE OF HEARING : 04/10/2019 /DATE OF PRONOUNCEMENT : 10/ 10/2019 O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER : PRESENT MISC. APPLICATION IS DIRECTED AT THE INSTANCE OF THE ASSE SSEE POINTING OUT APPARENT ERROR IN THE ORDER OF THE TRIBUNAL PASSED IN ITA NO.116/AHD/2016 FOR THE ASSTT.YEAR 2011-12. 2. THE ASSESSEE HAS PLEADED THAT A BUNCH OF FIFTEEN APPEALS INVOLVING NUMBER OF YEARS HAS BEEN DECIDED BY THE TRIBUNAL VI DE ORDER DATED 28.6.2019. A COMMON ISSUE, WHETHER RECEIPT OF PROC EEDS ON SALE OF CARBON CREDITS DESERVE TO BE TREATED AS CAPITAL REC EIPTS, AND REQUIRED TO MA NO.229/AHD/2019 - 2 - BE EXCLUDED FROM TAXABLE INCOME, WAS INVOLVED IN TH E ASSTT.YEARS 2007- 08 TO 2011-12. FOR THE ASSTT.YEARS 2007-08, 2008-0 9 AND 2009-10, IT WAS RAISED BY WAY OF ADDITIONAL GROUNDS OF APPEAL, WHER EAS IN THE ASSTT.YEARS 2010-11 AND 2011-12, IT WAS SPECIFICALL Y RAISED. THE TRIBUNAL WHILE TAKING COGNIZANCE OF THIS ISSUE IN PARA 112 F AILED TO TAKE NOTE OF GROUND NO.5 OF ITA NO.116/AHD/2016 IN THE ASSTT.YEA R 2010-11. ACCORDING TO THE ASSESSEE, THOUGH THE TRIBUNAL HAS DISCUSSED THE ISSUE REGARDING ADMISSIBILITY OF ADDITIONAL GROUNDS AS WE LL AS ON MERIT, WHETHER RECEIPTS ON SALE OF CARBON CREDITS DESERVES TO BE TREATED AS CAPITAL RECEIPTS AND REQUIRES TO BE EXCLUDED FROM T AXABLE INCOME. ACCORDING TO THE ASSESSEE, IT IS AN INADVERTENT ERR OR CREPT IT HE ORDER OF THE TRIBUNAL. THE LD.COUNSEL FOR THE ASSESSEE WHIL E TAKING US THROUGH THE RECORD CONTENDED THAT THE TRIBUNAL HAS RELIED U PON ITS EARLIER ORDERS PASSED IN THE CASE OF THE ASSESSEE FOR THE ASSTT.YE ARS 2012-13 AND 2013-14 AS WELL AS DECISION OF HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF ALEMBIC LTD. VS. DCIT. SHE CONTENDED THAT TRIBUNAL S ORDER IN THE CASE OF ASSESSEE FOR THE ASSTT.YEARS 2012-13 AND 2013-14 HAS ALSO BEEN UPHELD BY THE HONBLE JURISDICTIONAL HIGH COURT. THEREFOR E, SHE CONTENDED THAT APPARENT ERROR BE RECTIFIED. 3. THE LD.DR, ON OTHER HAND UNABLE TO CONTROVERT TH IS CONTENTION OF THE LD.COUNSEL FOR THE ASSESSEE. 4. WE HAVE DULY CONSIDERED RIVAL SUBMISSIONS AND GO NE THROUGH THE RECORD CAREFULLY. A PERUSAL OF THE TRIBUNALS ORDE R FROM PARAGRAPH-112 ON PAGE NO.77 TO 116 ON PAGE NO.88 WE ARE SATISFIED THAT AN INADVERTENT ERROR CREPT IN THE ORDER OF THE TRIBUNAL WHICH REQU IRES RECTIFICATION. ACCORDINGLY, WE MODIFY IT AS UNDER: MA NO.229/AHD/2019 - 3 - 112. IN THE FIRST LINE OF THIS PARAGRAPH I.E. IN TH E REMAINING GROUND NO.4 IN ITA NO.117/AHD/2016 FOR THE ASSTT.YE AR 2011-12, THE LINE IS HEREBY REPLACED AND BE READ AS UNDER: 112. IN THE REMAINING GROUND NO.5 OF ITA NO.116/AHD/2016, AND GROUND NO.4 IN ITA NO.117/AHD/ 2016 FOR THE ASSTT.YEARS 2010-11, 2011-12 BE READ. 5. SIMILARLY, WE MAKE IT CLEAR TO THE AO THAT THIS GROUND BE TREATED AS ALLOWED IN THE ASSTT.YEAR 2010-11. IN OTHER WORDS, RECEIPT FROM PROCEEDS ON SALE OF CARBON CREDITS IN THE ASSTT.YEAR 2010-11 BE ALSO TREATED AS CAPITAL RECEIPTS. THIS DIRECTION IS GIVEN IN ACCOR DANCE WITH TRIBUNALS DIRECTION IN ALL OTHER ASSESSMENT YEARS. WITH THE ABOVE OBSERVATION, THE APPLICATION OF THE ASSESSEE IS TREATED AS ALLOWED. 6. IN THE RESULT, MISC. APPLICATION OF THE ASSESSEE IS ALLOWED. PRONOUNCED IN THE OPEN COURT ON 10 TH OCTOBER, 2019. SD/- SD/- (PRADIP KUMAR KEDIA) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED, 10/10/2019