2019 (1) TMI 1364

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....ht in allowing as revenue deduction the contribution of Rs. 51,21,254/made by the Assessee Company to various clubs run by and meant for the staff and their families at various places even though such expenditure was not allowable u/s. 40A(9) of the Income Tax Act? (b) Whether, on the facts and in the circumstances of the case and in law, the Tribunal was right in holding that notional sales tax exemption amount of Rs. 60,65,07,100/is a capital receipt not liable to Income tax? (c) Whether, on the facts and in the circumstances of the case and in law, the Tribunal was right in deleting the addition of Rs. 3,11,32,910/made u/s. 145A of the Income tax Act, 1961 being difference between the closing balance and the opening balance of CENV....

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....t, subsequently, the Gujarat High Court in a judgment dated 19th July, 2016 passed in Income Tax Appeal No. 1773 of 2008 and other connected Appeals, has answered the question in favour of the assessee. We may record the concluding observations of the Gujarat High Court in this respect, as under: "So far as issue no.4 is concerned, Mr. Soparkar submitted that the issue is already covered by a decision of this Court in the case of Gujarat State Export Corporation Limited v/s. Commissioner of Income Tax reported in [1994] 209 ITR 649 (Gujarat). We have heard both the learned counsel and perused the record. We have also gone through the decisions cited before us. The Tribunal has followed its own decision in the case of Gujarat Narmada V....

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....ncluding observations of the Gujarat High Court in this respect as under: "We have heard both the learned counsel and perused the record. We have also gone through the decisions cited before us. After considering the material on record, we are of the view that the issues involved in this appeal are squarely covered by the decisions of Apex Court in the cases of Ponni Sugars and Chemicals Ltd.,(supra), Meghalaya Steels Ltd., (supra), Sri Venkata satyanarayana Rice Mill Contractors Co. (supra), Ajanta Pharma Ltd., (supra) and the decisions of this Court in Tax Appeal No. 226 of 2010, Tax Appeal No. 77 of 2008, Sarabhai M. Chemicals (P) Ltd., (supra). Learned advocate for the revenue is not in a position to convert the law laid down in the ....