ITO, WD-1(3), KOLKATA, KOLKATA vs. M/S DUROPLUS INDIA(P) LTD., HOWRAH

The sole issue raised by the revenue is against the action of Ld. CIT(A) in holding that the subsidy received by the assessee of Rs.35,70,502/- is capital in nature and deleted the addition as made by the AO. The revenue has challenged the order of the Ld. CIT(A) only on the sole issue i.e. whether the ld. CIT(A) is correct in allowing the appeal of the assessee by following the decision of the ITAT, Kolkata in its order dated 16.01.2009 in 1984 and 1985/Kol/2008 by holding that the subsidy received by the assessee is capital in nature.

At the time of hearing Ld. AR submitted that the issue is squarely covered in favour of the assessee by the decision of coordinate bench in assessee’s own case vide 1984 and 1985/Kol/2008 for AYs 1999-2000, 2000-01 and 2001-02 dated 16.01.2009. He also submitted that since the Ld. CIT(A) has given relief to the assessee by following the aforesaid order of the Tribunal, supra, no interference to be indeed needed in this case and the same may be upheld. On the other hand, the Ld. DR relied on the order of the AO.

We have heard rival submissions and gone through the facts and circumstances of the case. We have also gone through the order passed by the coordinate bench in assessee’s own case in 1984 and 1985/Kol/2008 for AYs 1999-2000, 2000-01 and 2001-02 dated 16.01.2009, which is available in paper book pages 21 to 25. We also find that the Ld. CIT(A) has given relief to the assessee by following the aforesaid order of the Tribunal, supra. Since the issue is squarely covered in favour of the assessee and the Ld. CIT(A) has given relief to the assessee by following the aforesaid order of the Tribunal, supra, we do not find any infirmity in his order and the same is hereby upheld. Therefore, the appeal filed by the revenue is dismissed.

In the result, appeal of the revenue is dismissed.

Order is Pronounced in the open Court on 09.06.2017. Sd/- Sd/- (Dr. A. L. Saini) (Aby. T. Varkey) (डॉ. ए. एल. सैनी) (ऐ. ट�. वक�) Accountant Member Judicial Member Dated : 9th June, 2017 Jd.(Sr.P.S.) Copy of the order forwarded to: Appellant – ITO, Ward-1(3), Kolkata. 1. Respondent – M/s. Duroplus India (P) Ltd., 151/2, Andul Road, 2 Shalimar, Howrah-711103 The CIT(A), Kolkata 3. 4. CIT , Kolkata 5. DR, Kolkata Benches, Kolkata /True Copy, By order,