2019 (7) TMI 986

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....Standing Counsel For the Respondent : Mr.R.Venkatanarayanan, for M/s.Subbaraya Aiyar Padmanabhan & Ramamani JUDGMENT (DELIVERED BY T.S.SIVAGNANAM, J.) This appeal, by the Revenue filed under Section 260A of the Income-tax Act, 1961 is directed against the order dated 31.10.2017 passed by the Income Tax Appellate Tribunal 'C' Bench, Chennai (for brevity, "the Tribunal"), in I.T.....

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....e difference between the sales-tax loan amount and amount paid on the Net Present Value basis as per Scheme of Maharashtra Government sales-tax deferral scheme is a revenue receipt and is to be considered as a income as per Sec.28(iv) of the I.T.Act, 1961?" 3.Heard Mrs.R.Hemalatha, learned Senior Standing Counsel for the appellant/Revenue; and Mr.R.Venkatanarayanan, learned counsel for the resp....

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....section 41(1), but the assessee is deemed to have received the sum of Rs. 4.14 crores, which is the difference between the original amount to be remitted with the payment made. The revenue terms this as deemed payment by the State to the assessee. The Tribunal has found that the first requirement of section 41(1) is that the allowance or deduction is made in respect of the loss, expenditure or a t....

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....escribed by the SICOM. In other words, what the assessee was required to pay after 12 years in 6 equal instalments was paid by the assessee prematurely in terms of the NPV of the same. That the State may have received a higher sum after the period of 12 years and in instalments. However, the statutory arrangement and vide section 38, 4th proviso does not amount to remission or cessation o....