TaxTMI 
TaxTMI 
2018 (8) TMI 1947
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....egistry has computed the delay accordingly. He submitted that the Ld CIT(A) has passed the order on 04-05-2016 and the same has been received by the AO on 13.5.2016. The present appeal has been filed on 04-07-2016 and hence there is no delay in filing the appeal. On perusal of the record, we find that the submissions made by Ld D.R to be correct. Accordingly we hold that the appeal has been filed by the Revenue within the time prescribed under the Act. 3. The cross objection filed by the assessee is also barred by limitation by 543 days. The assessee has moved a petition before the bench praying the bench to condone the delay. The Ld A.R submitted that the assessee has taken a specific ground before Ld CIT(A) that the Sales tax incentive is a Capital receipt. Further in the financial statements also, the assessee has specifically stated that the sales tax incentive is not exigible to tax both under the normal provisions and also for computing book profit u/s 115JB. However, the said claim was omitted to be pressed before the AO during the course of assessment proceedings. The said mistake was pointed out by the Counsel to whom the appeal work relating to Tribunal was entrusted. ....
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.... and the claim for exclusion of the same shall be made at the time of assessment. We notice that both the assessee as well as the assessing officer ignored the note so put in the statement of total income. Though the assessee claimed the sales tax incentive as capital receipt before Ld CIT(A), yet it did not putforth its claim for exclusion of same for the purposes of computing book profit u/s 115JB of the Act. The submission of the assessee is that the earlier counsel of the assessee did not pursue this issue properly before the tax authorities. When a new counsel was engaged for the Tribunal work, the new counsel has pointed out this omission and accordingly the present cross objection came to be filed belatedly. Even though it is the duty of the assessee to put forth correct claims, yet we are of the view that there is mistake on the part of earlier counsel also. Considering the facts discussed above and further considering the fact that the assessee has sought to raise a claim in the Cross objection, which were already mentioned in the return of income filed before the AO, we are of the view that there is reasonable cause for the delay in filing cross objection. Accordingly, we....
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....case laws, more particularly, the decision rendered by Mumbai bench of Tribunal in the case of Alok Industries Ltd (ITA No.1017/Mum/2017 dated 21-05-2018); the decision rendered by Kolkata bench of Tribunal in the case of Tata Metaliks Ltd (2016)(48 ITR (Trib)(272) and the decision rendered by Jaipur bench of Tribunal in the case of Shree Cement Ltd (2014)(31 ITR (Jaipur-Trib) 0513). 13. The Ld D.R, on the contrary, submitted that the provisions of sec. 115JB is a code by itself. Hence what is allowed to be deducted from Net profit alone could be deducted. He submitted that the provisions of sec. 115JB do not provide for deduction of capital receipts and hence the claim of the assessee should be admitted. 14. We heard the parties on this issue and perused the record. In the cases relied upon by the assessee, it has been held that the Capital receipt should be excluded for the purpose of computing book profit u/s 15JB of the Act. For the sake of convenience, we extract below the observations made by the coordinate bench in the case of M/s Alok Industries Ltd (supra):- 25. Contention of learned AR was as under:- i. Section 115JB should be considered subject to....
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....me is held to be capital in nature, it comes outside the meaning of the term 'income' and therefore outside the ambit of section 4 i.e, the charging section. Unless, specifically made taxable such subsidy cannot be taxed as income. Once the subsidy received cannot be taxed under section 4, there cannot arise any taxability under section 115JB of the Act, which merely provides for an alternate mechanism for computation of income and tax thereon. Thus, an item which is not otherwise taxable cannot be subjected to tax under the MAT provision without any express authority in this behalf. Also, if we look at Explanation 1 to section 115JB(2), We find that the legislature has defined 'book profit'. For calculation of such book profit, one has to reduce certain items, which inter alia include, item 'ii' which states that "the amount of income to which any of the provisions of section '10 (other than the provisions contained in clause (38) thereof) or section 11 or section 12 apply, if any such amount is credited to the profit and loss account". Thus, what can be discerned from above item is that, for calculation of book profit one has to reduce those items of income which do not f....
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....AT 173 TTJ 238 Profit arising on transfer of development rights 26 to 28 10 Metal & Chromium Plater (P) Ltd. Madras ITAT 76 taxmann.com 229 Long-term capital gain exempt u/s. 54EC 6 & 7 11 Sutlej Cotton Mills Ltd. Kolkata Special bench 45 ITD 22 Capital gain resulting from sale of capital asset which was exempt 19.2 19.5 12 Frigsales (India) Ltd. Mumbai ITAT 4 SOT 276 Profit on sale of depreciable asset which was not taxable due to purchase of another depreciable asset as provided in Section 50 3.2 13 Mcnally Bharat Engineering Co. Ltd. Kolkata ITAT 100/Kol/2011 Retention money 41 to 43 14 Delhi Gymkhana Club Ltd. Delhi ITAT 3585/Del/2006 Income exempt as per doctrine of mutuality 13 15 Goldgerg FinancePvt. Ltd. Mumbai ITAT 7496/Mum/2013 Share from AOP which was not taxable under normal provisions as per section 86 11 29. More importantly, the decision of the Jaipur Tribunal in the case of Shree Lement Ltd. (ITA No. 614 / JP / 2010) has exhaustively discussed the issue und....