TaxTMI 
TaxTMI 
2022 (10) TMI 1032
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.... Appellant DCIT, Circle-1(4), Mumbai (hereinafter referred to as the Revenue) and appellant M/s. Grasim Industries Ltd. (hereinafter referred to as the assessee) by filing aforesaid cross appeals sought to set aside the impugned order dated 08.07.2021 passed by Pr. Commissioner of Income Tax (Appeals) [hereinafter referred to as the PCIT(A)], on the grounds inter alia that: Grounds of Appeal of Revenue's appeal ITA No. 1834/M/2021 "1. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred, in allowing Sales Tax Subsidy as Capital receipt by relying upon the decision of Hon'ble Bombay High Court in the case of Reliance Industries Ltd. (88 ITD 273) without appreciating the fact that the said decision ....
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....f the Hon'ble Supreme Court dated 2nd July, 1995 in the case of U.P. Rastriya Chini,. v. The State of U.P. & Ors., 1995 AIR 2148 : 1995 SCC (4) 738, the judgment of the Hon'ble Special Bench of the ITAT in Reliance Industries Ltd. 88 ITD 273 (SB) (supra) is non-est and has no precedent value after the Hon'ble Supreme Court set aside the judgment of the Hon'ble Bombay High Court affirming the judgment of the Hon'ble Special Bench of the ITAT in Reliance Industries Ltd., 88 ITD 373 (SB). 6. On the facts and in the circumstances of the case and in law, as held by the Hon'ble Supreme Court in the case of Navopan India Ltd. Hyderabad v. Collector of Central Excise and Customs, Hyderabad, 1994 Suppl (3) Supreme Court Cas....
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.... 294 (SC), when there is a case to which the computation provision cannot apply, such a case is not intended to fall into the charging section; the approach of the assesses to calculate the so called notional subsidy in a roundabout way does not fit into the scheme of income-tax assessments. 10. The appellant craves leave to add, delete, alter, modify, rectify, substitute or otherwise any or all of the grounds of appeal at or before the time of hearing of the appeal." Grounds of Appeal of Assessee's appeal ITA No. 1736/M/2021 "1. On the facts and in the circumstances of the case and in law, the learned CIT(A) erred in not directing the learned AO to exclude Sales tax subsidy, being a capital receipt, from Profit as shown in the ....
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....ssessment order under section 143(3) read with section 254 of the Act after considering the submissions made by the assessee company, "that the sales tax subsidy received by the assessee company is revenue in nature in the hands of the assessee company by rejecting the claim of the assessee company that the same is capital receipt and thereby framed the assessment at Rs. 987186649/- under section 143(3) read with section 254 of the Act. 6. Assessee carried the matter before the Ld. PCIT(A) by way of filing appeal who has allowed the appeal filed by the assessee. Feeling aggrieved with the impugned order passed by the Ld. PCIT(A) both assessee as well as Revenue have come up before the Tribunal by way of filing present cross appeals. 7. We....
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....rendered by Hon'ble Bombay High Court in case of Pr. CIT vs. Welspun Steel Ltd. 103 taxmann.com 436 and decision rendered by Hon'ble Gujarat High Court in case of CIT vs. Indian Petrochemical Ltd. 74 taxmann.com 163 and also by relying upon the decision rendered by Hon'ble Supreme Court in case of CIT vs. Ponni Sugars and Chemicals Ltd. 306 ITR 392. 11. At the very outset, the Ld. A.R. for the assessee contended that this issue has already been decided in favour of the assessee by the co-ordinate Bench of the Tribunal for A.Y. 1996-97 to 2000-01 in assessee's own case vide order dated 29.04.2022, copy of order is available at page 1 to 114 of the paper book. 12. We have perused the order passed by the co-ordinate Bench of ....
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....ugned findings returned by the Ld. PCIT(A) in not directing the AO to exclude sales tax subsidy being a capital receipt from the profit shown in the statement of profit & loss account while computing the book profit under section 115JB of the Act. This issue has already been decided by the Hon'ble Bombay High Court in case of M/s. Harinagar Sugar Mills Ltd., ITA No. 1710 of 2014 dated 3rd April, 2017 (Bombay-HC) and ITA No. 1132 of 2014 order dated 4th January, 2016 available at page Nos. 191 to 196 of case law paper book wherein following question of law was framed. "(ii) Whether on the facts and in the circumstances of the case and in law, the Tribunal is correct in upholding the order of Commissioner of Income Tax (Appeals) in dire....