ACIT, LUDHIANA vs. M/S VARDHMAN YARNS & THREADS LIMITED, LUDHIANA

आदेश/ORDER PER BENCH:

These cross appeals by the assessee as well as by the

Revenue have been preferred against the separate orders of

the Commissioner of Income Tax (Appeals)-1, Ludhiana

[hereinafter referred to as CIT(A)] relating to respective

assessment years.

order of the Tribunal dated 13.7.2017. However, thereafter

the assessee moved Miscellaneous Applications bearing

numbers MA No.98/Chd/2017 in ITA No.530/Chd/2012, MA

No.99/Chd/2017 in ITA No.569/Chd/2012, MA

No.100/Chd/2017 in ITA No.1159/Chd/2013 & MA

No.101/Chd/2017 in ITA No.2/Chd/2014 respectively

pleading therein that while adjudicating the aforesaid

appeals vide common order dated 13.7.2017, the following

additional ground of appeal taken by the assessee has

remained unadjudicated:

“That the Ld. AO has erred in not treating the interest reimbursement under TUF Scheme as capital receipt” 3. After hearing the Ld. Representatives of the parties the

aforesaid Miscellaneous Applications were decided vide

common order dated 18.6.2018, whereby the plea of the

assessee that the aforesaid additional ground taken by the

assessee remained unadjudicated, was found correct.

Therefore, consolidated order dated 13.7.2017 was recalled

on the limited point of adjudication of the above additional

ground as to whether the interest reimbursement under TUF

Scheme is capital receipt or not.

passed in the aforesaid MA Nos.98/Chd/2017 & Others,

these appeals were heard on limited issue as to whether the

reimbursement of interest under TUF Scheme is capital

receipt or not. At the outset, both the Ld. Representatives of

the parties have submitted that in the case of sister concern

of the assessee, namely Vardhman Textile Limited, Ludhiana

Vs. Addl. CIT in ITA Nos.1429/Chd/2010 & Others decided

vide common order dated 18.12.2018, wherein while

adjudicating the identical additional ground, taken by the

assessee, the issue has been restored to the file of the

CIT(A), observing as under:

“22. Apart from the above, the assessee has raised an additional ground of appeal which reads as under:- “That the authorities below have erred in treating the interest reimbursement of Rs. 24,64,44,644/- under Technology Upgradation Fund Scheme (TUFS) as Revenue receipt instead of capital receipt.” 23. The assessee has claimed that interest reimbursement of Rs. 24,64,44,644/-received under ‘Technology Upgradation Fund Scheme’ (TUFS) should be treated as capital receipt instead of Revenue receipt as treated by the lower authorities. Admittedly, this ground has been taken as addition ground which has not been examined by the lower authorities. The Ld. Counsel for the assessee submitted that in the earlier years also this issue has been restored to the file of the CIT(A) for decision afresh. 24. Considering the above submissions of the Ld. Counsel for the assessee, this additional ground is restored to the file of the CIT(A) for adjudication afresh in accordance with law taking into

consideration the relevant case laws as maybe available or cited before him.” 4. Since the aforesaid additional ground taken by the assessee in these appeals also has been taken for the first time and the same has not been looked into by the lower authorities, hence, following the order passed in the case of sister concern of the assessee, this limited issue is restored back to the file of the CIT(A) for decision afresh in similar terms and in accordance with law. However, our findings given vide order dated 13.7.2017 on other issues will remain unchanged and the adjudication on the aforesaid issue by the CIT(A) will not have any bearing on our findings given on other issues vide order dated 13.7.2017.

Sd/- Sd/- अ�नपूणा� गु�ता संजय गग� (SANJAY GARG) (ANNAPURNA GUPTA) लेखा सद�य/Accountant Member �याय�क सद�य/Judicial Member �दनांक /Dated: 11th March, 2019 *रती* आदेश क� ��त�ल�प अ�े�षत/ Copy of the order forwarded to : 1. अपीलाथ�/ The Appellant 2. ��यथ�/ The Respondent 3. आयकर आयु�त/ CIT 4. आयकर आयु�त (अपील)/ The CIT(A) 5. �वभागीय ��त�न�ध, आयकर अपील�य आ�धकरण, च�डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड� फाईल/ Guard File

आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar