KM KNIT WEAR,TIRUPUR vs. ADIT,CPC, BANGALORE

ITA 358/CHNY/2022Status: DisposedITAT Chennai20 September 2024AY 2018-1960 pages
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What did the Tribunal hold?

The Tribunal held that the incentives received by the assessee for exploring new export markets are capital in nature and not taxable as income. The Tribunal distinguished the facts from previous judgments and applied the principle of ejusdem generis.

What were the facts?

The assessee, engaged in manufacturing and exporting garments, received incentives from the Government for exploring new export markets. The Assessing Officer treated these incentives as revenue receipts, while the assessee claimed them as capital receipts.

What were the issues?

Whether incentives received for exploring new export markets are capital or revenue receipts, and the applicability of Section 2(24)(xviii) of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 28

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Cases cited in this judgment(2)Show list

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Heard together (3 matters)

I.T.A. Nos.3326/Chny/2019
I.T.A. No.706/Chny/2022
I.T.A. No.768/Chny/2022

Read from the judgment's own cause title. This page is filed under one of them.

आयकर अपीलीय अधिकरण, 'सी' न्यायपीठ, चेन्नई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘C' BENCH, CHEΝΝΑΙ श्री एस.एस. विश्वनेत्र रवि, न्यायिक सदस्य एवं श्री जगदीश, लेखा सदस्य के समक्ष । Before Shri S.S. Viswanethra Ravi, Judicial Member & Shri Jagadish, Accountant Member आयकर अपील सं./I.T.A. Nos.3326/Chny/2019 & 326/Chny/2024 निर्धारण वर्ष/Assessment Years: 2017-18 & 2018-19 [PAN: AACCC0952E] (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) आयकर अपील सं./I.T.A. No.706/Chny/2022 निर्धारण वर्ष/Assessment Year: 2017-18 Victus Dyeings, 410, P.N. Road, R.K. Nagar, Tirupur 641 601. [PAN: AACFV4420D] (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) आयकर अपील सं./I.T.A. No.768/Chny/2022 निर्धारण वर्ष/Assessment Year: 2017-18 The Deputy Commissioner of Income Tax, Circle 1, Tirupur. M/s. K.M. Knit Wear, 14, E.F. Lakshmi Nagar, First Street, Vs. City Garden, Tirupur 641 602. [PAN: AACFK3053B] (अपीलार्थी/Appellant) (प्रत्यर्थी/Respo

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