2018 (4) TMI 1572

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....ohit Jain and Mr Kunal Gokhale, Advs ORDER Admit. The following question of law arises for determination:- "Did the ITAT fall into error in holding that the jurisdictional Commissioner of Income Tax (CIT) could not have exercised revisional jurisdiction under Section 263(1) of the Income-tax Act?'' With consent of the learned counsel for the parties, the appeal was finally hea....

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....AT considered the merits of the scheme and took into consideration the judgments of the Supreme Court in Sahney Steel & Press Works Ltd. etc. v. CIT (1997) 228 ITR 253 (SC) and CIT v. Ponni Sugars and Chemicals Ltd (2008) 306 ITR 392 (SC). Thereafter, it concluded as to the nature of the subsidy, that on a fair analysis of the facts, as to whether the subsidy amounts were capital or revenue was a ....

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....DLF Ltd.(supra) in the opinion of the Court, therefore, does hardly constitute an authority on the issue. Mainly, the A.O's decision in this case accepting the assessee's returns on the point upon the assessee's explanation, without recording any reasons, given the complex nature of the subsidy, was ex facie erroneous. Undoubtedly, it could potentially be prejudicial to the revenue - to the extent....