2018 (4) TMI 262

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....ncome of Rs. 2,86,30,720/-, thereafter it was through return of income revised to Rs. 36,71,210/-. The AO determined the income of the assessee at Rs. 10,47,36,353/- under MAT proceedings wherein he disallowed an amount of Rs. 3,39,01,072/- and Rs. 71,68,305/- on account of sales tax remission and u/s 14A respectively vide its order dated 28.01.2014 passed u/s 143(3) of the Act. The CIT(A)deleted the addition made on account of sales tax remission by placing reliance on the decision of the Co-ordinate bench in assessee's own case and in the case of REI Agro Ltd vs DCIT in respect of disallowance made u/s 14A of the Act. 3. Before us the ld. DR relied on the order of the AO. 4. The ld. AR submits that the issue raised in ground no.1 by the....

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....curred the promotion of industries in the State of West Bengal and consequently, following the decision of Hon 'ble Supreme Court in the case of Sahaney Steel & Press Works Ltd. Vs. CIT'228 ITR 253 holding the sales tax remission as capital receipt. Ld. counsel also drew our attention to- the fact that the sales tax remission under West Bengal Incentive Scheme, 1993/1999 was revenue or capital has already been examined and decided by ITAT, Kolkata Bench in the following appeal: "1. In the case of ITO, Ward-1(3) Kol Vs. M/s. Duro Plast India Pvt. Ltd.. in ITA No. 1983, 1984, 1985/Kol/2008 dated16.01.2009 for Asstt. Years 1999-2000 to 2001-02. 2. In the case of DCIT, Cir-12, Kol Vs. M/s. Teesta Agro Industries Ltd. In ITA No. 12....

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....ies i.e. Metro Diary Ltd. And Birla Sunlife Mutual Fund in terms of expenditure to be disallowed under Rule 8D(2)(iii) of the Rules. 8. Before us, the ld. DR relied on the order of AO and ld. A%R supported the order of CIT(A). 9. Heard rival submissions and perused the material on record. The contention of the ld. AR was that the assessee earned dividend from two companies i.e. (i) Metro Diary Ltd and (ii) Birla Sunlife Mutual Fund which yielded exempt income of Rs. 53,20,226/- and the average investment connected thereto is Rs. 2,10,48,250/- but, not Rs. 12,81,95,222/- as determined by the AO in his order. The CIT(A) by placing reliance on the decision of Coordinate bench in the case of REI Agro Ltd which held that those investments whic....