2025 (6) TMI 214

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....sessment order dated 26-12-2016 under section 143(3)of the Income Tax Act 1961 [hereinafter referred as 'the Act']. 2. The assessee has raised following grounds of appeal: 1. That on the facts and in the circumstances of the case, the Ld CIT(A) was not justified and grossly erred in non-considering the claim of Focus Product Scheme/Focus Market Scheme as capital receipt in computing the total income under the normal provision of the Act as well as in computing the book profit u/s 115JB. 2. That on the facts and in the circumstances of the case, the Ld. CIT(A) erred in disallowing the claim of Education Cess in computing tax liability under normal provision of the Act. 3. That the appellant craves leave to add, ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....CIT(A) the assessee has preferred the appeal before the tribunal. 6. We have heard the parties and perused the material available on record. The ld. AR has submitted that government gave the subsidy to enhance Indian export potential in the international market and the subsidy has to be treated as capital in nature and it was excludable from book profit u/s 115JB of the Act. He further submitted that the issue involved in ground no 1 is squarely covered in the case of ITA no 1545&146 /Del/2021 M/s. RSWM ltd. v. DCIT and the case of Principal Commissioner of Income Tax, Ajmer v. Nitin Spinners Ld. [2020] 116 taxmann.com26 (Rajasthan). He also submitted that for the A.Y. 2014-15 the Ld. CIT(A) has given the relief to the assessee's own cas....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ssessee's own case for Assessment Year 2013-14 in favour of the assessee. Apart from the same, the Hon'ble High Court of Rajasthan in the case of Principal Commissioner of Income Tax, Ajmer Vs. Nitin Spinners Ltd. vide order dated 19/09/2019 reported in 2019 (2020) 116 Taxman.com 26 (Rajasthan held as under:- "As far as the question with regard to Focus Marketing Scheme was concerned, apparently the Central Government gave the subsidy to enhance Indian export potential in the international market. It was not granted to meet the cost of expenditure to meet the competition of the Indian textile market. The ITAT took note of judgment in Ponni Sugars & Chemicals Ltd. (supra) and held that the amount was not an export incentive,....