TaxTMI 
TaxTMI 
TaxTMI 
2018 (5) TMI 513
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....39;t be held to be erroneous& prejudicial to the interest of revenue to the extent of this issue. 3) That the IPA was received as per the West Bengal Incentive Scheme, 2000. The eligible certificate issued by the competent authority as per the West Bengal Incentive Scheme, 2000 approved as mega project under the said scheme, In which the IPA is received. The assessee is covered by the Jurisdictional High Court decision in the case of M/s. Rasoi India Ltd. and various other decisions of jurisdictional ITAT. Hence it cannot be held to be either erroneous or prejudicialto the interest of the revenue. 4) That the assessee craves leave to add, alter, amend or withdraw any ground orgrounds of appeal before or at the time of hearing." 3. The brief facts of the case is that the Assessing Officer passed the assessment order u/s 143(3) in respect to assessee company by order dated 22.03.2013. This order of the Assessing Officer has been interfered by the ld. Principal CIT-1 exercising his revisional jurisdiction u/s 263 of the Act and has passed impugned order dated 19.03.2015 and has set aside the original assessment order dated 22.03.2013 in respect of (i) subsidy received amountin....
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....grounds of appeal reproduced above, the assessee has not preferred to challenge the direction of the ld. Principal CIT in respect of direction for unpaid liability for gratuity of Rs. 2,10,450/-. Therefore, the said direction is not disturbed. Giving to the next direction in respect of subsidy received of Rs. 196.77 lakhs is concerned, we note from a perusal of the assessment order of Assessing Officer that there is no whisper about the subsidy of Rs. 2,33,51,560/- received by the assessee from W.B.I.D.C.I (promotional assistance). The ld. counsel for the assessee could not bring to our notice any statutory notices issued by the Assessing Officer during assessment proceedings wherein the question of the said receipts has been queried as to whether it is a capital receipts or revenue receipts. Therefore, the ld. Principal CIT's observation that the Assessing Officer did not investigate this issue, could not be controverted by the assessee. It has to be noted that the Assessing Officer while assessing an assessee, plays a dual role to discharge (i) as an investigator and (ii) as a adjudicator. In this case, we note that the Assessing Officer has not conducted any investigation in res....
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....Bengal Govt. does not at all envisage giving any subsidy in respect of specify items of expenses like sale tax, power, water etc. and hence the same cannot be regarded to be revenue nature." To conclude on our case, the subsidy in the form of Industrial Promotion Assistance received by way of refund of Sales Tax is not on account of subsidy in respect of specific item of expenses like sales tax, power, water etc. The incentive is directly linked with the investment made in setting up of new industries in the area demarcated in the scheme of WBIs 2000. Therefore, under no circumstances the receipt of IPA can be treated as revenue receipt." 6. So, while giving effect to the order of the ld. Principal CIT, the Assessing Officer shall consider the aforesaid submissions of the assessee & the observations of ours given above. Needless to say that the assessee should be heard before passing the appeal effect order by the Assessing Officer. The Assessing Officer, to pass a speaking order taking into consideration judicial precedents cited above, provided the facts of the assessee's case are similar and identical to the facts of the case in Rasoi Ltd.(supra). The ld AO should also consi....
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....age where it may not be reasonably possible at all to complete the inquiry before the last date before which the assessment must be completed." 7. We note that judgment of the Hon'ble jurisdictional High Court should be followed by the Tribunal and authorities below, for that we rely on the judgment of the Hon'ble Bombay High Court in the case of Thane Electricity Supply, 206 ITR 727 (Bom.H.C), wherein it was held as follows: "The law declared by the Supreme Court being binding on all Courts in India, the decisions of the Supreme Court are binding on all Courts, except, however, the Supreme Court itself which is free to review the same and depart from its earlier opinion if the situation so warrants. What is binding is, of course, the ratio of the decision and not every expression found therein. The decisions of the High Court are binding on the subordinate Courts and authorities or Tribunal under its superintendence throughout the territories in relation to which it exercises jurisdiction. It does not extend beyond its territorial jurisdiction. A Single Judge of a High Court is bound by the decision of another single judge or a Division Bench of the same High Court. It w....
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....any High Court are to be accepted as a binding precedent by all Courts including other High Courts and Tribunals in the country, the very distinction between the precedent value of Supreme Court decision and the High Court decision will be obliterated. Such a situation is neither contemplated by the Constitution nor it is in consonance with the principles laid down by the Supreme Court and the doctrine of stare decisis. A conjoint reading of ss. 257 and 260 of the IT Act clearly goes to show that the Act itself contemplates independent decisions of various High Courts on the question of law referred to them. It has visualised the possibility of conflict of opinion between different High Courts on the same question of law and has also made specific provision to take care of such a situation in suitable cases. In fact, in the light of the clear language of s. 260 of the Act, every High Court is required to give its own opinion on a particular question of law. It should not follow, as a matter of course with a view to achieve uniformity in the matter of interpretation, the decision of another High Court, if such decision is contrary to its own opinion. Because, such action will be con....