2024 (2) TMI 1568

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....s condoned. 2. The application is allowed. 3. This appeal by the revenue filed under Section 260A of the Income Tax Act, 1961 is directed against the order dated 24.11.2022 passed by the Income Tax Appellate Tribunal, "A" Bench, Kolkata (the Tribunal) in IT (SS)A No. 37/Kol/2019 for the assessment year 2015-16. The revenue has raised the following substantial questions of law for consideration:- A) Whether the Learned Tribunal has committed substantial error in law by dismissing the appeal of the Revenue and in allowing the assessee's claim of the Sales tax incentive received from the State Government under West Bengal Industrial Promotion (Assistance to Industrial Units) Scheme in short (IPS) 2010 as capital receipt in place of Revenue....

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....After setting out both the Supreme court judgements referred to hereinabove, the High Court found that the concessions were issued in order to achieve the twin objects of acceleration of industrial development in the State of Jammu and Kashmir and generation of employment in the said State. Thus considered, it was obvious that the incentives would have to be held capital and not revenue. Mr. Ganesh, learned Senior Counsel, pointed out that by an order dated 19.04.2016, this Court stated that the issue raised in those appeals was covered, inter alia, by the judgment in Ponni Sugars, and the appeals were, therefore, dismissed. We have no hesitation in holding that the finding of the Jammu and Kashmir High Court on the facts of the incentive....

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.... the book profit for the purpose of computation under section 115JB of the Income-tax Act, 1961. For the aforesaid reason, we hold that the interest and power subsidy under the schemes in question would have to be excluded while computing book profit under section 115JB of the Income-tax Act, 1961. The third issue involved in the instant appeal which requires adjudication is whether the action of the Tribunal entertaining/allowing the claim which was made by the assessee before the Assessing Officer by filing a revised computation instead of filing a revised return since the time to file the revised return had lapsed, for claiming to treat the incentive subsidies in question as capital receipts instead of revenue receipts as claimed in orig....