TaxTMI 
TaxTMI 
2022 (9) TMI 653
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....,27,220/- after claiming deduction under Chapter VIA at Rs.18,76,38,726/- and paid the taxes under MAT at book profit of Rs.46,40,00,764/-. 2.1 The case of the Assessee was selected for scrutiny under CASS and in pursuance to which notice dated 04.09.2014 u/s. 143(2) was served upon the Assessee, whosubsequently revised its return on dated 21.03.2015 and declared total income at 'NIL' after claiming deduction under Chapter VIA to the tune of Rs.8,84,45,531/- and paid taxes on the book profit of Rs.31,55,80,349/-. Under the revised return, the Assessee had also reduced the total income by an amount of Rs.14,84,20,415/- by showing the same as 'capital receipts', which was earlier shown as 'revenue receipts' in the original return of income. The Assessee also reduced the book profit at the same amount in its revised return and paid the taxes accordingly. Therefore considering the said facts during the assessment proceedings, it was observed by the Assessing Officer that in the original return of income, the Assesseedeclared the income under the heads of business, income from other sources and income from capital gains. After claiming deduction of Rs.18,59,51,576/- u/s. 80IB of t....
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....profit under MAT as well. 2.5 The Assessing Officer also made other additions, which are not subject matter before us. 3. The Assessee, being aggrieved also challenged the said addition before the ld. Commissioner, who vide impugned order allowed the claim of the Assessee to the extent of treating excise duty and interest subsidy as 'revenue receipts' and deleted the addition on that account under the normal provisions of the Act by holding as under : "4. The issue in this appeal is covered in favour of the appellant on merits by the order of Hon'ble High Court of Jammu & Kashmir reported in 333 ITR 335. The SLP filed against the said case has been dismissed by the Hon'ble Apex Court. For reference the head note of the order of reported in 333 ITR 0335 in the case of Shree Balaji Alloys &Ors. is reproduced nere in under:- "Tribunal has relied upon five factors to hold the incentives in question as production incentives but without dealing with that part of the scheme, whereby unemployment in the State had been intended to be eradicated creating atmosphere for accelerated industrial development to provide employment opportunities to deal with the soci....
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....industrial development, to deal with the social problem of unemployment in the State, additionally creating opportunities for self- employment, hence a purpose in public interest. In this view of the matter, the incentives provided to the industrial units, in terms of the New Industrial Policy, for accelerated industrial development in the State, for creation of such industrial atmosphere and environment, which would provide additional permanent source of employment to the unemployed in the State of Jammu & Kashmir were in fact, in the nature of creation of new assets of industrial atmosphere and environment, having the potential of employment generation to achieve a social object. Such incentives, designed to achieve public purpose, cannot, by any stretch of reasoning, be construed as production or operational incentives for the benefit of Assessees alone. Thus, looking to the purpose of eradication of the social problem of unemployment in the State by acceleration of the industrial development and removing backwardness of the area that lagged behind in industrial development, which is certainly a purpose in the public interest, the incentives provided by the Office Memorandum and....
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....lhi April 19, 2016 6. At the time the assessment order was passed the decision of Hon'ble Apex court was not available. Therefore, on merit, the issue is covered in favour of appellant by the decision of the Hon'ble Apex Court. 7. It was confirmed by the appellant that till AY 2013-14 refund of excise duty and interest subsidy were shown by the appellant on revenue receipts. In AY 2012-13, the receipts were claimed as capital receipts, during the course of assessment proceedings. The AO did not allow the same by relying on the decision of the Apex court in the case of Goetzeindia Ltd. reported in 284 ITD 323. However, the CIT(A) allowed the claim of the appellant and held the receipts to be of capital nature in order dated 30.12.2015. In AY 2012-13 i.e. the year under appeal, valid revised return was filed on 21.03.2015 making the claim of receipts being of capital nature. Therefore, the addition made is deleted as far as computation/assessment of income under normal provisions of the Act is concerned." 4. The Revenue Department, being aggrieved, is in appeal against the said deletion of additions of Rs.10,67,03,009/- and Rs.4,17,16,506/- made ....
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....the said addition under MAT provisions, held that the issue is covered against the appellant by the decision of Hon'ble ITAT, Bangalore in the case of B&B Infotech Ltd., 155 ITD 1040. The ld. Commissioner further held that the issue is also covered against the appellant by the decision of Hon'ble Apex Court in the case of Apollo Tyres Ltd., 255 ITR 273. The Assessee before us submitted that for bringing to tax under MAT provisions, the first and foremost condition is that such a receipt should be first held as an income under the charging section and if it is not an income, then the same cannot be brought to tax under the MAT provisions also. Further what cannot be taxed directly, cannot be tax indirectly as well. The ld. AR also relied upon various judgments in support of its case. 7.3 On the contrary, the ld. DR heavily relied upon the orders passed by the authorities below specifically the impugned order. 7.4 Heard the parties and perused the material available on record. On the basis of the conclusion drawn by the authorities below and rival claims of the parties, question emerge, if the addition is deleted under the normal provisions of the Actthen what would be the f....
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....cannot be brought to tax in garb of 'minimum alternative tax' applicable on book profits computed u/s. 115JB of the Act. The ratio of judgment delivered by the Hon'ble High Court of Calcutta in case of Ankit Metal & Power Ltd. [2019] 109 taxmann 93 (Cal) is worth mentioning.... 6.6. We, therefore, respectfully following the aforesaid ratio of Hon'ble High Court hold that Carbon credits being the capital receipts cannot be brought to tax as book profits and are, thus, liable to be excluded from the computation of book profits u/s. 115JB. The additional ground of appeal no. 4 of the Assessee is thus allowed." 7.4.3 We have given thoughtful consideration the peculiar facts and circumstances of the case, the issue involved and the decisions of the authorities below and of the Hon'ble Courts referred to above on the issue in hand. With regard to determination of the Ld. Commissioner that the issue is covered against the Appellant by the decision of the Hon'ble Apex Court in the case of Apollo Tyres Ltd. vs Commissioner Of Income Tax, Kochi {255 ITR 273 SC}, we observe that Hon'ble Calcutta High Court in PCIT, Central-2, Kolkata vs. Ankit Power Ltd., (supra) a....