TaxTMI 
TaxTMI 
2018 (8) TMI 1058
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....by deleting the addition of Rs. 5,79,60,145/- made on account of duty credit scrips received but not utilized, by following the order of CIT(A)VII, Delhi who had himself relied on the decision of Hon'ble apex court in Godhra Electricity Co. Ltd. Vs C1T[1997] 225 ITR 746, a case wherein the issue dealt with is not even distantly similar to the one involved in this case. 2. The CIT (Appeals) has erred in law and on facts by deleting the addition of Rs. 5,79,60,145/- made on account of duty credit scrips received but not utilized by not appreciating that such duty credit scrips fetch free foreign exchange to the assessee and such scrips are cash assistance received by the assessee and are therefore taxable in terms of the provisions of clau....
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....r vary from the above grounds at or before the time of hearing." 2. At the outset Ld.AR submit that identical issue has been decided by Coordinate Bench of this Tribunal in assessee's own case for A.Y. 2006-07 in ITA 4032/Del/2011 vide order dt. 24.03.2017, wherein it has been held as under. "88. We have perused submissions advanced by both sides in the light of records and judicial decision placed before us. 89. On perusal of the same, it is observed that assessee had not undertaken any import of goods during years under consideration which is an admitted position. In our considered view, income does not accrue until imports are made and raw materials are consumed by assessee. Ld.DR has not brought any material contrary on record so....
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....n the result, appeal filed by Revenue stands dismissed. 4. Cross Objection filed by assessee is regarding restricting suo moto disallowance made by assessee under section 14 A at Rs. 3.17 crores, being amount of exempt income earned by assessee during year under consideration. 4.1. Ld.AR, relying upon decision of Hon'ble Supreme Court in case of National Thermal Power company Ltd vs. CIT reported in (1998) 229 ITR 383, submitted that both assessee as well as revenue can raise a question before this tribunal for the 1st time, so long as the relevant facts are on record. Referring to the assessment order, and the discussion made regarding suo moto disallowance made by assessee under section 14A, Ld.AR submitted that the cross objection is ....
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....h, a sum of Rs. 23,85,68,748/-, was offered to tax as disallowance under section 14 A read with Rule 8D. Ld.AO passed assessment order, by making additions in the hands of assessee on other issues, against which assessee had filed appeal before Ld.CIT(A). Ld.CIT (A) granted relief to assessee on certain issues against which revenue preferred appeal before this Tribunal. 4.5. A cross objection has been filed by Assessee in the appeal filed by revenue. The issue raised in the cross objection is regarding restricting disallowance under section 14 A to the extent of exempt income and to exclude the investments made by tenets group concerns/subsidiary companies which were made to acquire controlling interest or to serve the business interest of....
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.... take a new ground not agitated in the court below by leave of the court, there appears to be no reason why a respondent in support of the decree in his favour passed by the lower court should not be entitled to agitate a new ground and subject to the same limitation. A Division Bench of the Allahabad High Court has taken a similar view in Kanpur Industrial Works v. Commissioner of Income-tax [1966] 59 ITR 407 (All.). That judgment has considered the position of an appeal under section 33 of the Income-tax Act along with the relevant Rules and that of an appeal under the Code of Civil Procedure and the provisions of Order XLI, rule 22. The judgment holds that when the department files an appeal for an increase in the assessed income, the su....