2017 (6) TMI 1077

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....ing the fact that assumption of jurisdiction by Income Tax Officer , Ward 4(2), Jaipur over the case for scrutiny and issuance of jurisdictional notices was erroneous against the CBDT instructions/circulars and order of higher authorities, consequently the assessement proceedings were without jurisdiction, therefore assessment order is void-ab-initio and liable to be quashed. (2) That the ld. CIT(A), Bikaner (camp at Jaipur) has erred in law and on facts in not appreciating the case was selected for scrutiny in contravention to CBDT Instruction No. 6/2007 dated 18.07.2007, therefore the whole assessment is void-ab-initio and liable to be quashed. (3) That the ld. CIT(A), Bikaner (camp at Jaipur) has erred in law and on fac....

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....law and on facts in denying the deduction of Rs. 9,27,000/- made by the AO u/s 80IB(11) u/s of the IT Act, 1961 to the appellant. (9) Because the ld. CIT(A), Bikaner camp at Jaipur has erred in law and on the facts in not allowing deduction u/s 80IB(11)of the Income Tax Act, 1961. (10) That the ld. CIT(A), Bikaner (camp at Jaipur) has erred in law and on facts in confirming the addition of Rs. 2388/- made by the AO alleging late deposit of ESI employee contribution. (11) That the ld. CIT(A), Bikaner (camp at Jaipur) has erred in law and on facts in rejecting the ground of appeal filed before him. (12) That the impugned appellate order passed by the Ld. CIT(A), Bikaner (camp at Jaipur) is illegal and is ag....

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....ced as under. "It was also submitted by the ld. Counsel for the appellant that AO was justified in deducting the amount of subsidy from the cost of plant and machinery and cold storage building. The ITAT in this respect has affirmed the findings of CIT(A). Following reasons have been assigned by ITAT: (12) Considering the above submissions, we find that the AO while dealing with the issue has not considered the material concept of "Black Ended Subsidy "released by NABARD to the Bank of Baroda with a direction to sanction the such amount as a term loan to the assessee. In the books of the bank at that time the said amount of subsidy was sanctioned to the assessee as term loan and it was accounted for by the Bank of Baroda, ....

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..... Thus, we find that no substantial question of law is involved in the appeal. The appeal being devoid of merit is hereby dismissed." 7. The ld. DR submitted that the said findings of the Hon'ble Rajasthan High Court has been duly followed by the AO while completing the assessment proceedings for the subject assessment year wherein the written down value of the assets have been determined after reducing the subsidy for the purposes of allowability of depreciation. 8. Per contra, the ld AR took us through the findings of the Coordinate Bench in ITA No. 716/JP/13 dated 16.12.2015 for AY 2007-08. 9. We have heard the rival contentions and pursued the material available on record. The Hon'ble Rajasthan High Court has approved the findi....