2021 (9) TMI 1340

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....econd additional ground raised before Tribunal on 16.07.2019 and the relevant ground reads as under: - "Additional Ground No.2 of Appeal before the Hon. Income Tax Appellate Tribunal. The learned Assessing Officer erred in adding back a sum of Rs.7,45,00,000/- towards allocation of interest expenses towards dividend income, under the head business income." 3. The learned Counsel for the assessee also drew our attention to the main ground No.3 regarding allocation of interest expenses towards dividend income under the head business income and the relevant ground No.3 read as under:- "3. The learned Commissioner of Income Tax (Appeals) erred in confirming the disallowance u/s 80M/Section 14A with a direction to r....

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....ical facts, the Tribunal for AYs 1992-93, 1993-94 and 1994-95 has decided the issue in favour of the assessee. Facts being identical, we follow the above orders of the Co-ordinate Bench and allow the 3rd ground of appeal. Consequently, the related additional ground becomes academic in nature." 5. When these were pointed out to the learned Sr. Departmental Representative, he fairly conceded the position. 6. After considering the submissions, we direct the Assessing Officer that the Tribunal on identical facts for Assessment Years 1992-93 to 1994-95 has decided the issue in favour of the assessee and hence, ground No.3 is decided in favour of the assessee. Since, the assessee has also raised additional ground No. 2, towards allocation o....

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....he amount retained by the company in accordance with section 41 of the West Bengal Sales Tax Act, 1944 (read with the West Bengal Incentive Scheme, 1999), was a capital receipt not chargeable to tax under the Income Tax Act." 9. The assessee has claimed that the treatment of sales Tax incentive and fertilizer subsidy as income eligible for claiming of deduction under section 80IB of the Act but the assessee by way of additional ground urged that the sales tax incentive and fertilizer subsidy provided by the government as price concession is a capital receipt and hence, it is not at all to be taxed. Therefore, it was contended that the issue has arisen before the Tribunal for the first time and i.e. whether the receipt by way of sales tax....