2023 (3) TMI 1154

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....aged in the business of formulation and marketing of plant protection agro-chemical, including insecticides, herbicides etc. Assessee electronically filed its return of income for A.Y. 2017-18 on 30.11.2017 declaring total income of Rs.118,61,64,030/-. The case of the assessee was selected for scrutiny and thereafter, assessment was framed u/s 143(3) of the Act vide order dated 23.12.2019 and the total income was determined at Rs. 1,23,48,92,320/-. Aggrieved by the order of AO, assessee carried the matter before CIT(A) who vide order dated 24.03.2021 in Appeal No.CIT(A), Delhi- 23/10270/2019-20 dismissed the appeal of the assessee. Aggrieved by the order of CIT(A), assessee is now in appeal and has raised the following grounds of appeal : ....

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....me despite the fact that by virtue of the purpose test it was a capital receipt and not chargeable to tax. Before CIT(A), by way of additional ground, assessee pleaded that the Excise duty subsidy is a capital subsidy and therefore not liable to be taxed. CIT(A) has noted that no claim for the amount of Excise duty Subsidy as being capital receipt was made before the AO but however before CIT(A), an additional claim was raised for the claim of Excise duty Subsidy claiming it to be non taxable receipts. CIT(A) at para 4.2 of the order while denying the claim of the assessee noted that no claim was made before the AO and no reasons were furnished by assessee to demonstrate as to what prevented the assessee from raising such claim before the A....

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....as further given a finding that the facts relating to excise duty subsidy are not available on record. He therefore, submitted that the CIT(A) was fully justified in denying the claim of the assessee. He thereafter submitted that if the claim of the assessee is allowed then the matter be remitted to AO for necessary verification as at present there is no finding of the authorities on the issue. He thus supported the order of CIT(A). 10. We have heard the rival submissions and perused the material available on record. The issue in the present ground is with respect to the claim of the assessee that the excise duty subsidy availed by it is capital receipt. It is an undisputed fact that the claim of excise duty subsidy being capital in nature....