Tribunal rulings on various tax issues: Leave encashment, Section 115JB, Industrial Promotion Assistance, Deferred Sales Tax Liability.

The Tribunal allowed the assessee's appeal on the issues of leave encashment and disallowance under Section 115JB, while dismissing the Revenue's appeal on the issues of Industrial Promotion Assistance, Deferred Sales Tax Liability, and disallowance under Section 14A. The Tribunal's decisions were based on consistency with its previous orders and relevant judicial precedents.

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Issues Involved:
1. Addition on account of leave encashment.
2. Disallowance in computing book profit under Section 115JB relating to Industrial Promotion Assistance and Sales Tax Incentive.
3. Deletion of disallowance made on account of Industrial Promotion Assistance and Deferred Sales Tax Liability.
4. Deletion of disallowance made under Section 14A of the Income Tax Act.
5. Addition under Section 14A for the purpose of book profit under Section 115JB.

Detailed Analysis:

1. Addition on Account of Leave Encashment:
The assessee challenged the addition made by the CIT(A) on account of leave encashment. The Tribunal found that the issue was covered by its own orders from previous assessment years (2005-06 to 2011-12). The Supreme Court in the case of Exide Industries Ltd. vs. Union of India had granted a stay against the decision of the Calcutta High Court. The Tribunal remanded the matter to the Assessing Officer (AO) for fresh consideration, pending the final order of the Supreme Court. Consequently, the ground raised by the assessee was allowed for statistical purposes.

2. Disallowance in Computing Book Profit under Section 115JB:
The assessee challenged the disallowance related to Industrial Promotion Assistance and Sales Tax Incentive. The Tribunal noted that the issue was covered by its previous orders for the assessment years 2010-11 and 2011-12. The Tribunal cited its earlier decision where it was held that sales tax incentives and state capital investment subsidies, being capital in nature, should not be included in the book profits under Section 115JB. The Tribunal allowed the assessee's ground, reversing the CIT(A)'s decision.

3. Deletion of Disallowance Made on Account of Industrial Promotion Assistance and Deferred Sales Tax Liability:
The Revenue's appeal challenged the deletion of disallowance made on account of Industrial Promotion Assistance and Deferred Sales Tax Liability. The Tribunal found that this issue was also covered by its previous orders in the assessee's own case. It was noted that subsidies given to promote industries are not subject to tax. The Tribunal upheld the CIT(A)'s order, dismissing the Revenue's ground.

4. Deletion of Disallowance Made under Section 14A:
The Revenue's appeal also challenged the deletion of disallowance made under Section 14A. The Tribunal noted that no dividend income was earned by the assessee in the year under consideration, and hence, the disallowance under Section 14A was not maintainable. The Tribunal referred to the Supreme Court's decision in the case of Oil Industries Development Board, which upheld the principle that no disallowance should be made when no exempt income is earned. The Tribunal upheld the CIT(A)'s order, dismissing the Revenue's ground.

5. Addition under Section 14A for the Purpose of Book Profit under Section 115JB:
The Revenue's appeal also challenged the addition made by the AO on account of Section 14A while computing book profit under Section 115JB. The Tribunal found that this issue was covered by its earlier decision in the assessee's own case for the assessment year 2007-08. It was held that the provisions of Section 14A could not be imported into Clause (f) of Explanation (1) to Section 115JB. The Tribunal upheld the CIT(A)'s order, dismissing the Revenue's ground.

Conclusion:
The Tribunal allowed the assessee's appeal on the issues of leave encashment and disallowance under Section 115JB, while dismissing the Revenue's appeal on the issues of Industrial Promotion Assistance, Deferred Sales Tax Liability, and disallowance under Section 14A. The Tribunal's decisions were based on consistency with its previous orders and relevant judicial precedents.

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