STADMED PRIVATE LIMITED,KOLKATA vs. DCIT, CIRCLE - 10, KOLKATA, KOLKATA

The sole issue involved in this appeal of assessee is against the action of Ld. CIT(A) in sustaining the addition of Rs.13,02,553/- made by AO overlooking the fact that it was the subsidy received by the assessee from West Bengal Industrial Promotion Scheme which is capital receipt and not revenue receipt as held by the AO/Ld CIT(A).

At the outset itself, it was pointed out by the Ld. AR that the issue is covered in favour of assessee. So, after hearing rival submissions of the parties and after perusal of the material available on record, we note that the assessee has filed a paper book which, inter alia, contains copies of the orders of the Tribunal in assessee’s own case for AYs 1997-98, 1998-99, 1999-2000, 2001-02, 2002-03, 2003-04, 2005-06, 2006-07 (available in paper book pages12 to 49 of the paper book). Assessee’s paper book also contains orders of this Tribunal in the case of Rasoi Ltd. for AYs. 1995-96 to 1998-99 and several other cases (available in paper book pages 70 to 93). We note that similar case wherein the identical

There being no change in the facts and circumstances of the assessee’s case for the year under consideration than those already decided by the coordinate Bench of this Tribunal in assessee’s favour, we see no reason to differ from the view earlier taken in the case of the assessee. Respectfully following the aforesaid orders of the Tribunal, we decide the issue in favour of the assessee and set aside the actions of the lower authorities and allow the claim of the assessee that subsidy in question received from West Bengal Industrial Promotion Scheme is capital in nature and consequently order deletion of the addition on this issue. Appeal of assessee is allowed.

In the result, appeal of assessee is allowed.