DEPUTY COMMISSIONER OF INCOME TAX,CIRCLE-1, TIRUPPUR vs. EASTMAN EXPORTS GLOBAL CLOTHING P LTD, TIRUPPUR,TAMILNADU

ITA 326/CHNY/2024Status: DisposedITAT Chennai20 September 2024AY 2018-19Bench: Shri S.S. Viswanethra Ravi (Judicial Member), Shri Jagadish (Accountant Member)60 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that incentives received by exporters for exploring new markets are capital receipts and not taxable as business income. This decision was based on previous orders in similar cases.

What were the facts?

The appeals concerned whether incentives received by exporters for exploring new markets were capital or revenue receipts. The Assessing Officer treated them as revenue, while the CIT(A) held them as capital receipts.

What were the issues?

The primary issue was the classification of export incentives as capital or revenue receipts. The secondary issue involved the applicability of Section 28(iiib) to such incentives.

Which sections of the Income-tax Act were involved?

Section 28,Section 35(2AB),Section 260A

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Cases cited in this judgment(16)Show list

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Heard together (4 matters)

I.T.A. Nos.3326/Chny/2019
I.T.A. No.706/Chny/2022
I.T.A. No.768/Chny/2022
I.T.A. No.358/Chny/2022

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

आयकर अपीलीय अिधकरण, ’सी’ "ायपीठ, चे"ई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘C’ BENCH, CHENNAI "ी एस.एस. िव"ने" रिव, "ाियक सद" एवं "ी जगदीश, लेखा सद" के सम" । 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 िनधा"रण वष"/Assessment Years: 2017-18 & 2018-19 Nagar South, Tirupur 641 603. Tirupur 641 602. [PAN: AACCC0952E] (अपीलाथ"/Appellant) (""थ"/Respondent) आयकर अपील सं./I.T.A. No.706/Chny/2022 िनधा"रण वष"/Assessment Year: 2017-18 [PAN: AACFV4420D] (अपीलाथ"/Appellant) (""थ"/Respondent) आयकर अपील सं./I.T.A. No.768/Chny/2022 िनधा"रण वष"/Assessment Year: 2017-18 The Deputy Commissioner of M/s. K.M. Knit Wear, City Garden, Tirupur 641 602. [PAN: AACFK3053B] (अपीलाथ"/Appellant) (""थ"/Respondent) आयकर अपील सं./I.T.A. No.358/Chny/2022 िनधा"

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