2021 (4) TMI 793

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....ant - Revenue that the assessee - Company filed its return of income on 31.10.2002 declaring an income of Rs. 26,16,02,820/- and the return was processed under Section 143 (1) on 27.06.2003. Thereafter, notice under Section 148 dated 18.03.2009 was served on the assessee and the assessee filed a letter stating that the original return filed may be treated as one in response to the notice issued under Section 148. Thereafter, notice under Section 143(2) dated 26.08.2009 was served on the assessee and based on the particulars filed by the assessee, the assessment was finalized. The Assessing Officer found that the assessee had debited an amount of Rs. 2,30,30,088/- towards Entry Fee under the head Miscellaneous Charges in the Profit and Loss ....

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....ved over the same, the Revenue filed an appeal before the Income Tax Appellate Tribunal and the Tribunal also confirmed the order of the CIT (Appeals) and dismissed the appeal. Challenging the order passed by the Income Tax Appellate Tribunal, the Revenue has filed the above appeal. 3.The above appeal was admitted on the following substantial questions of law: "1)Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in upholding the order of CIT(A) who deleted the disallowance of entry tax on raw materials and the inputs that are brought into assessee factory at Bangalore for manufacture of Tractors? 2)Whether the finding of the Tribunal is proper especially when the assessee has debited....

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....Income Tax Act on the entry tax paid. Consequently, we reject the Revenue's plea on double deduction. The provisions of Sales Tax Act and the Income Tax Act are on the different lines. The adjustment or the treatment given under the Sales Tax Act cannot be read in to the Income Tax Act and the only question is whether the entry tax actually paid by the assessee during the year under consideration is allowable as deduction or not. The Tribunal rightly allowed the deduction claimed by the assessee on account of tax payment made under Entry Tax Act. Consequently, we reject the Revenue's appeal. 35. Insofar as T.C.(A). No. 173 of 2009 is concerned, the first question on the claim of foreign exchange fluctuation of forward contract is ....