TaxTMI 
TaxTMI 
2014 (1) TMI 1723
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....ked that why decision of Hon'ble Jurisdictional High Court in case of CIT Vs. Abhishek Industries, 286 ITR 1 should not be followed and a detailed representation was made by the assessee. However, the Assessing officer was not satisfied and following the decision of Hon'ble Punjab and Haryana High Court in case of CIT Vs. Abhishek Industries (supra) treated the sum of Rs. 7,62,72,378/- as revenue income. 4 On appeal the action of the Assessing officer was confirmed by the LD. CIT(A). 5 Before us. the Ld. Counsel for the assessee fairly admitted that this issue is covered against the assessee by the decision of the Tribunal in assessee's own case for ay 2006-07 in ITA No. 773/Chd/2012. 6 On the other hand, the Ld. D.R. for the Revenue strongly supported the order of the Ld. CIT(A). 7 After considering the rival submissions we find that identical issue came up for consideration of the Tribunal in ay 2006-07 in ITA No. 773/Chd/2012. Same was decided by the Tribunal vide para 10 to 12 which are as under: "10. We have heard the rival contentions and perused the record. The issue in the present appeal is against the treatment of incentives granted to the asse....
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....Court in Sahney Steel & Press Works Ltd. (supra) had held that the subsidy received by the assessee was in the nature of capital receipt, since the object behind the same was setting up of new unit/expansion of existing business. Further reliance was placed on the decision of the Calcutta High Court in CIT Vs. Rasoi Ltd. (supra) pointing out that the taxability of the receipts given by way of subsidy, essentially boils down to the purpose for which the subsidy was granted. The contention of the assessee was that the purpose of granting exemption from sales tax for a fixed period of time, in the facts of the present case, was clearly to provide incentives for establishment of new industry in the underdeveloped region of the State. As the intention was not to increase the profitability of the eligible unit, the said incentive received by the assessee was capital receipt not liable to tax. Further it was pointed out by the learned A.R. for the assessee that the facts of the present case are squarely covered by the recent decision of the Hon'ble Gujarat High Court in the case of CIT Vs. Birla VXL (supra), which while adjudicating the issue of taxability of subsidy granted under the....
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.... under section 158A(1) of the Act and it was pointed out that the issue was identical to the issue raised in assessment years 2003-04 and 2004-05, where the appeal of the assessee was pending before the Hon'ble High Court. Request was made before us to apply the decision of the Hon'ble High Court in assessment years 2003-04 and 2004-05 to the issue raised in assessment year 2005-06. In view of the above said facts and circumstances and respectfully following the earlier order of the Tribunal in assessee's own case, we confirm the order of the CIT (Appeals) in holding that the sales tax subsidy received by the assessee is revenue in nature. The ground Nos.1 and 2 raised by the assessee are thus dismissed." Following the above, we decide this issue against the assessee. 8 Ground No. 3 - After hearing both the parties we find that during assessment proceedings the Assessing Office noticed that the assessee has made investments in Bharuch Eco-Aqua Infrastructure Ltd. (in short BEIL) and some mutual funds, therefore Sec 14A r.w.r. 8D was invoked and disallowance of Rs. 3,85,921/- was made out of interest and expenditure. 9 On appeal it was mainly submitted that investment ....
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....ies of Ankleshwar, Jhagadia and Panoli Industrial Estates. The objective is to receive the industrial effluent Treatment Plant (FETP) upto marine standards and then to convey deep into the sea. VC&MD-GIDC is the Chairman of NCTL. Ever since the issues of Environment Protection become a priority agenda across the world, Indian Government & Gujarat Government has joined the international community in its commitment towards Environment Protection Program. The priority accorded to control of Environment pollution is evident from the number of pollution control acts enacted alongwith rules and regulations. Keeping the spirit and intent of these policies, implementation at ground level is the major challenge. Prior to commencement of this project, treated effluent from three industrial estates were disposing off into a natural creek namely Amlakhadi leading to Narmada Estuary. Objection was raised by local population and NGOs against disposal of effluent and subsequently High Court has intervened and directed to stop the disposal of effluent into Amlakhadi. Afterwards in high level Committee Meeting chaired by ACS, it was decided to treat effluent up to marine standard and to relea....