TaxTMI 
TaxTMI 
TaxTMI 
2025 (8) TMI 1176
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.... this appeal. The AO has filed a petition for condonation of delay supported by an affidavit stating therein the reason for belated for this appeal. We have perused the reason for belated filing of this appeal and we are of the view that there is sufficient cause and no latches can be attributed to the AO. Hence, we condone the delay of 16 days in filing this appeal and proceed to dispose off the appeal on merits. 3. The grounds raised by the Revenue read as follows:- 1. The order of the learned Commissioner of Income Tax(Appeals) is against the law in holding that the receipts from sale of MEIS Scrips are capital in nature. 2. The Learned CIT (A) has erred in law following the decision of Hon'ble ITAT in the case of Eastman Expor....
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....Duty Drawback. The assessee before the FAA submitted that the issue is covered in favour of the assessee in assessee's own case from assessment years 2011-12 to 2013-14 and other judicial pronouncements detailed below:- ii. Hon'ble Madras High Court in the case of CIT v Eastern Seafoods Exports (P.) Ltd. [1995] 215 ITR 64 iii. Hon'ble High Court of Jammu & Kashmir in the case of Shree Balaji Alloys & Ors. V CIT[2011] 333 ITR 335 iv. Hon'ble ITAT, Chennai in the case of M/s Eastman Exports Global Clothing Pvt. Ltd. v. Hon'ble CIT(A), NFAC in the case of K M KNIT WEAR, DIN & Order No : ITBA/NFAC/S/250/2021-22/1037187733(1) vi. Hon'ble ITAT, Chennai in the case of ACIT vs. M/s Eastman Exports Global Clothing Pvt. Ltd. ITA No.3326/CH....
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....015 were also discussed. After elaborate discussion and considering decisions regarding subsidy given by Hon'ble Apex court in case of CIT Vs. Ponni sugars and chemical LTD and Sahney Steel and press works LTD and others, the Hon'ble tribunal has concluded that the amount received from sale of MEIS is not taxable as revenue receipt and it is held that the amount received is capital receipt. This decision is rendered by Jurisdictional ITAT which is binding on the undersigned. In view of following decisions I am bound to abide by the decision of Hon'ble ITAT: i. ITO Vs. Siemens India Ltd & 156 ITR 11(BOM) ii. Shree Rajendra Mills Ltd vs CIT 109 ITR 229 iii. Union of India Vs Kamalakshi Finance Corporation Ltd AIR1992SC711 In view ....
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....ary issue on merits namely whether the sale of MLFPS receipts is revenue or capital in nature. The Co-ordinate Bench of the Tribunal in the case of ACIT vs. Eastman Exports Global Clothing (P.) Ltd., (supra) after considering the judicial pronouncements and scheme under which the amounts were received by assessee, had held the amount received is a capital receipt. The Tribunal has also considered the amendment brought about by the Finance Act, 2015 to section 2(24)(xviii) of the Act while coming to the aforesaid conclusion. The relevant finding of the Tribunal in the case of Eastman Exports Global Clothing (P.) Ltd., (supra) reads as follows:- 42. On perusal of the above, we note that the question arose for consideration is when the asses....
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.... or cash incentive or duty draw back or waiver or concession or reimbursement provided under section 2(24)(xviii) of the Act. We hold the ICDS-VII is not applicable as it deals with Government grants only, but not inclusive of the duty credit scrips under MEIS, which are rewards. We hold that the benefit under Foreign Trade Policy-2015 received being MEIS scrips cannot fall within the meaning of cash assistance under section 28(iiib) of the Act. We hold the sums received as a sale of MEIS scrips credited to the profit and loss account, the said treatment in the books of accounts by itself cannot be determinative of taxability of said receipt. Thus, the benefit derived by way of sale MEIS scrips in the open market is not an income with the m....