TaxTMI 
TaxTMI 
TaxTMI 
2022 (7) TMI 1513
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....ming the addition made of Rs.1,93,452/- on account of delayed contribution made to PF although the same was paid before the due date of furnishing of return u/s 139(1). 3. The ld. AO erred and ld. CIT(A) erred in confirming the treatment made w.r.t. subsidy received of Rs.2,72,696/- under IP scheme by deducting the receipt from block of asset. 4. The ld. AO erred and ld. CIT(A) erred in not treating the subsidy received under IP Scheme as capital receipt. 5. The ld. AO erred and ld. CIT(A) erred in addition of Rs.48,000/- on account of dividend received while the same was already offered to tax under "Income From Other Sources." 2. Brief facts of the case are that the appellant company is engaged in the business of manufacturing ....
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....e Assessing Officer. 4. Being aggrieved by the order of ld. CIT(A), the assessee filed appeal before this Tribunal. The ld. Authorised Representative(ld.AR) of the assessee submitted that on merit, the grounds of appeal are covered in favour of assessee by the decision of Hon'ble ITAT Pune bench in the case of ITO vs Shrinivas Engineering Auto Components Pvt Ltd., in ITA No. 2992/PUN/2017 dated 27.04.2022. 5. We have heard both the parties, perused the material available on record and have gone through the orders of Lower Authorities. We have also deliberated on various case laws relied by the ld. CIT(A) in his order as well as various case laws relied by ld.AR of the Assessee. 5.1 Ground No.2 of the appellant assessee is regarding delay....
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....the due date of filling the return of income under section 139(1) is allowable expenditure. Thus, the Ground No.2 of the assessee is allowed . 6. Ground No.3 is regarding Subsidy received from Govt of Maharashtra. It is a fact that Govt. of Maharashtra vide letter dated 13.12.2013 sanctioned Provisional Industrial Promotion Subsidy of Rs.69.84 lacs under the Package Scheme of Incentives -2007, subject to the conditions mentioned in the letter. As per Govt. of Maharashtra letter dated 03.03/2012 (ref no.DIC/PUNE/PSI2007/EC-29/2012) this subsidy was for making investment towards the project at Gat No.596, Hissa No.1, Dhoke, Sanghavi Dist. Pune which was called as eligible project. Assessee was granted Electricity Duty Exemption for the perio....
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.... judgment, the whole purpose and the grant of subsidy under PSI 2007 by Government of Maharashtra was to promote industrial growth in the less developed areas of the State and also to provide employment in the area. Once this purpose is established the subsidy has to be a capital receipt. However, the position has changed w.e.f. 01.04.2016 relevant to A.Y. 2017-18 onwards with the amended provision of sub-clause (xviii) to sec. 2(24) of the Act. However, at present, we are concerned with A.Y. 2011-12 to 2015-16. Therefore, the amended provision of sec. 2(24) sub-clause (xviii) is not applicable to the years under consideration and thus as a natural consequence the subsidy received by the assessee would therefore, not form part of its total ....
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....icity duty exemption, entry tax refund, VAT etc. over a period of 8 years. Then the next question, that arises for consideration in such circumstances is that, can be it said that subsidy is granted to meet the cost of the actual fixed assets, merely because the amount of subsidy is calculated in term of certain percentage of investment in fixed assets. The Hon'ble Supreme Court had an occasion to consider the identical issue in the case of CIT vs. P.J. Chemicals Ltd., 210 ITR 830 and after review of the case law on the point, the Hon'ble Supreme Court held as under :- "Where Government subsidy is intended as an incentive to encourage entrepreneurs to move to backward areas and establish industries, the specified percentage of the fixed cap....
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....on 10 to section 43(1) which was inserted in the Statute w.e.f. 1.4.1999 by the Finance Bill (2) of 1998, the Proviso take cares of situation where such subsidy, grant or reimbursement is such nature that subsidy, grant or reimbursement cannot be directly relatable to the assets acquired by an assessee. In such a situation, the Proviso envisages that so much of amount which bears to the total subsidy, reimbursement or grant, the proportion as such assets bears to all the assets in respect of or with reference to which subsidy or grant is so received shall be deducted in the actual cost of the asset of the assessee. Thus, the proviso envisages adjustment of subsidy in the assets of the assessee. In case the subsidy grant is not directly rela....