2012 (7) TMI 490

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....rounds are general in nature and do not survive for adjudication. "1. The Ld. Commissioner of Income tax (A)-XI, Ahmedabad has erred in law and on facts in deleting the addition made of Rs.3,80,03,537/- on account of deferment of Sales-tax."   3. The assessee is a Private Limited Company engaged in the business of manufacturing and trading of starch, tapioca, chemicals, maize grain and allied products filed its return on 31-10-2007 declaring total income at Rs.13,14,89,550/-. The case was selected for scrutiny and subsequently order u/s 143(3) of the IT Act was passed on 12-11-2009. During the course of the assessment proceedings the learned AO on verification of the balance sheet noticed that he assessee had shown total sales ta....

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....ee's own case in ITA No.1500/Ahd/2009 for the AY 2003-04 vide order dated 07-08-2009 decided the same issue in favour of the assessee and against the revenue. The relevant portion of the said order is reproduced herein below: "6. The facts undisputed are that the assessee is having manufacturing unit in Karnataka. Karanataka Government had amended the Sales Tax Act for providing deferment of the Sales Tax liability and to treat the said sales tax collected as loan for use of the assessee Company. In this connection, we may refer to Section 19C of the Karanataka Sales Tax Act, 1957, which is reproduced as under: "19C- POWER OF GOVERNMENT TO NOTIFY EXEMPTION OF TAX OR DEFERRED PAYMENT OF TAX FOR NEW INDUSTRIES. (1) The government may....

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....undertaking expansion on the sale of finished goods as per F.D. Notification cited at reference 2 above, for a period of 8 years with effect from 14.12.2001 i.e., the date of the commencement of commercial production as evidenced by the first sale invoice bearing NO.3447 dated 14.12.2001 and limited to 80% of investment made on fixed assets which works out to Rs.39,62,40,000 (Rupees Thirty Nine Crores Sixty Two Lakhs Forty Thousand only)." Accordingly, the Joint Commissioner of Commercial Taxes, vide letter dt.5.11.2003 (copy placed on record) issued certificate of entitlement stating therein that the tax which is entitled for deferment shall be payable by the assessee's unit over a period of'5 years in ten equal half yearly installments....