NARMADA CLEAN TECH,BHARUCH vs. ITO, CIRCLE 2, EXEMPTION, AHMEDABAD

ITA 237/SRT/2025Status: DisposedITAT Surat18 September 2026AY 2013-1413 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the reopening of the assessment under Section 147 was not sustainable as the issue of the subsidy being a capital receipt was already considered and accepted in the original assessment under Section 143(3). The AO did not point out any tax evasion or escapement of income, indicating a mere change of opinion.

What were the facts?

The assessee received a government subsidy of Rs. 18,11,09,000/- for a capital project. This subsidy was initially credited to the balance sheet as capital receipt in the original assessment. Later, the Assessing Officer (AO) reopened the assessment to treat this subsidy as income for computing book profit under Section 115JB.

What were the issues?

Whether reopening of assessment under Section 147 is valid when the issue was already considered and accepted in the original assessment, and whether a government subsidy for a capital project should be treated as capital receipt or revenue for book profit calculation.

Which sections of the Income-tax Act were involved?

Section 115JB,Section 147,Section 143(3),Section 148

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, SURAT BENCH, SURAT

Before: MS. SUCHITRA KAMBLE & SHRI B.M. BIYANI

For Respondent: Shri Aashish Pophare, CIT(DR)
Pronounced: 18.09.2026

PER : SUCHITRA KAMBLE, J M:

The appeal filed by the assessee is against the order passed by the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [in short “CIT(A)”] dated 23.12.2024 for the Assessment Year (in short “AY”) 2013-14. 2. The assessee has raised the following grounds of appeal:

“1. The Ld. Commissioner of Income Tax (Appeals) has erred in law as well as on the f

The order continues below.

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