Sahney Steel and Press Works Ltd. v. CIT

DCIT Circle-1, Thane vs. M/S Everest Industries Ltd., Delhi

In the result, the In the result, the assessee and Revenue are are educated as under:

Bench: Shri Aby T Varkey () & Shri Om Prakash Kant () Assessment Year: 2008-09 & Assessment Year: 2009-10 & Assessment Year: 2012-13 & Assessment Year: 2013-14 Everest Industries Limited, Dcit, Circle-1, D-206, Sector-63, Noida- Ashar I.T. Park, 6Th Floor, B- 201301, Vs. Wing, 16-Z, Wagle Industrial Uttar Pradesh Estate, Thane(W)- 400 604. Pan No. Aaace 7550 N Appellant Respondent Assessment Year: 2008-09 & Assessment Year: 2009-10 & Assessment Year: 2012-13 & Assessment Year: 2013-14

…y the Hon'ble Apex relied on the principles laid down by the Hon'ble Apex Court in the case of Sahney Steel & Press Works v. CIT Court in the case of Sahney Steel & Press Works v. CIT Court in the case of Sahney Steel & Press Works v. CIT (1997) 94 Taxman 368/228 ITR 253 &Ponni Su (1997) 94 Taxman 368/228 ITR 253 &Ponni Su (1997) 94 Taxman 368/228 ITR 253 &Ponni Sugars & Chemicals Ltd. (supra) and after analyzing the Office Chemicals Ltd. (supra) and after analyzing the Office Chemicals Ltd. (supra) and after analyzing the Office Memorandum dated 14 Memorandum dated 14-06-2002 behind the grant of 2002 behind the…

DCIT, Circle-1, Thane vs. Everest Industries Ltd., Mumbai

In the result, the In the result, the assessee and Revenue are are educated as under:

Bench: Shri Aby T Varkey () & Shri Om Prakash Kant () Assessment Year: 2008-09 & Assessment Year: 2009-10 & Assessment Year: 2012-13 & Assessment Year: 2013-14 Everest Industries Limited, Dcit, Circle-1, D-206, Sector-63, Noida- Ashar I.T. Park, 6Th Floor, B- 201301, Vs. Wing, 16-Z, Wagle Industrial Uttar Pradesh Estate, Thane(W)- 400 604. Pan No. Aaace 7550 N Appellant Respondent Assessment Year: 2008-09 & Assessment Year: 2009-10 & Assessment Year: 2012-13 & Assessment Year: 2013-14

…y the Hon'ble Apex relied on the principles laid down by the Hon'ble Apex Court in the case of Sahney Steel & Press Works v. CIT Court in the case of Sahney Steel & Press Works v. CIT Court in the case of Sahney Steel & Press Works v. CIT (1997) 94 Taxman 368/228 ITR 253 &Ponni Su (1997) 94 Taxman 368/228 ITR 253 &Ponni Su (1997) 94 Taxman 368/228 ITR 253 &Ponni Sugars & Chemicals Ltd. (supra) and after analyzing the Office Chemicals Ltd. (supra) and after analyzing the Office Chemicals Ltd. (supra) and after analyzing the Office Memorandum dated 14 Memorandum dated 14-06-2002 behind the grant of 2002 behind the…

Everest Industries Ltd, Noida vs. Dy CIT Cirlce-1, Thane

In the result, the In the result, the assessee and Revenue are are educated as under:

Bench: Shri Aby T Varkey () & Shri Om Prakash Kant () Assessment Year: 2008-09 & Assessment Year: 2009-10 & Assessment Year: 2012-13 & Assessment Year: 2013-14 Everest Industries Limited, Dcit, Circle-1, D-206, Sector-63, Noida- Ashar I.T. Park, 6Th Floor, B- 201301, Vs. Wing, 16-Z, Wagle Industrial Uttar Pradesh Estate, Thane(W)- 400 604. Pan No. Aaace 7550 N Appellant Respondent Assessment Year: 2008-09 & Assessment Year: 2009-10 & Assessment Year: 2012-13 & Assessment Year: 2013-14

…y the Hon'ble Apex relied on the principles laid down by the Hon'ble Apex Court in the case of Sahney Steel & Press Works v. CIT Court in the case of Sahney Steel & Press Works v. CIT Court in the case of Sahney Steel & Press Works v. CIT (1997) 94 Taxman 368/228 ITR 253 &Ponni Su (1997) 94 Taxman 368/228 ITR 253 &Ponni Su (1997) 94 Taxman 368/228 ITR 253 &Ponni Sugars & Chemicals Ltd. (supra) and after analyzing the Office Chemicals Ltd. (supra) and after analyzing the Office Chemicals Ltd. (supra) and after analyzing the Office Memorandum dated 14 Memorandum dated 14-06-2002 behind the grant of 2002 behind the…

Everest Industries Ltd, Noida vs. Dy CIT Cirlce-1, Thane

In the result, the In the result, the assessee and Revenue are are educated as under:

Bench: Shri Aby T Varkey () & Shri Om Prakash Kant () Assessment Year: 2008-09 & Assessment Year: 2009-10 & Assessment Year: 2012-13 & Assessment Year: 2013-14 Everest Industries Limited, Dcit, Circle-1, D-206, Sector-63, Noida- Ashar I.T. Park, 6Th Floor, B- 201301, Vs. Wing, 16-Z, Wagle Industrial Uttar Pradesh Estate, Thane(W)- 400 604. Pan No. Aaace 7550 N Appellant Respondent Assessment Year: 2008-09 & Assessment Year: 2009-10 & Assessment Year: 2012-13 & Assessment Year: 2013-14

…y the Hon'ble Apex relied on the principles laid down by the Hon'ble Apex Court in the case of Sahney Steel & Press Works v. CIT Court in the case of Sahney Steel & Press Works v. CIT Court in the case of Sahney Steel & Press Works v. CIT (1997) 94 Taxman 368/228 ITR 253 &Ponni Su (1997) 94 Taxman 368/228 ITR 253 &Ponni Su (1997) 94 Taxman 368/228 ITR 253 &Ponni Sugars & Chemicals Ltd. (supra) and after analyzing the Office Chemicals Ltd. (supra) and after analyzing the Office Chemicals Ltd. (supra) and after analyzing the Office Memorandum dated 14 Memorandum dated 14-06-2002 behind the grant of 2002 behind the…

ACIT 3(1)(2), Mumbai vs. Hikal Ltd, Mumbai

In the result, the appeal filed by the revenue is dismissed

Bench: Shri Prashant Maharish & Pavan Kumar Gadaleacit – 3(1)(2), Vs. M/S Hikal Ltd Room No. 607, 6Th Floor 717/718, Maker Aayakar Bhavan, Chambers V, Mumbai – 400020. Nariman Point, Mumbai – 400021. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaach0383A Appellant .. Respondent Appellant By : Smt .Madhumalti Gosh.Cit Dr Respondent By : Sri.Sanjay Parikh.Ar Date Of Hearing 16.11.2022 Date Of Pronouncement 25.01.2023 आदेश / O R D E R Per Pavan Kumar Gadale Jm: The Revenue Has Filed The Appeal Against The Order Of The Commissioner Of Income Tax (Appeals)-8, Mumbai, Passed U/S 154 & 250 Of The Act. The Revenue Has Raised The Following Grounds Of Appeal:

…IN THE INCOME TAX APPELLATE TRIBUNAL “H” BENCH, MUMBAI BEFORE SHRI PRASHANT MAHARISH, ACCOUNTANT MEMBER & PAVAN KUMAR GADALE, JUDICIAL MEMBER ACIT – 3(1)(2), Vs. M/s Hikal Ltd Room No. 607, 6th Floor 717/718, Maker Aayakar Bhavan, Chambers V, Mumbai – 400020. Nariman Point, Mumbai – 400021. "थायी लेखा सं./जीआइआर सं./PAN/GIR No. : AAACH0383A Appellant .. Respondent Appellant by : Smt .Madhumalti Gosh.CIT DR Respondent by : Sri.Sanjay Parikh.AR Date of Hearing 16.11.2022 Date of Pronouncement 25.01.2023 आदेश / O R D E R PER PAVAN KUMAR GADALE JM: The revenue has filed the appeal against the order of the Commiss…

DCIT Circle-1, Thane vs. M/S Everest Industries Ltd., Delhi

Bench: Shri Kuldip Singh & Shri S. Rifaur Rahmanassessment Year: 2011-12

…. Further the Hon’ble Jammu and Kashmeer High Court while rendering its Judgment in the case of Shree Balaji Alloys -vs.- CIT (supra) had relied on the principles laid down by the Hon'ble Apex Court in the case of Sahnev Steel & Press Works - vs. - CIT (1997) 228 ITR 253 (SO & CIT - vs. - Ponni Sugars & Chemicals Ltd. (2008) 306 ITR 392 (SC) and after analyzing the Office Memorandum dated 14-06-2002 behind the grant of Incentive has held that Excise Duty refund granted with the object of creating avenues for Perpetual Employment, to eradicate the social problem of unemployment in the State by accelerated industri…

Everest Industrial Ltd., Noida vs. Dy CIT Circle-1, Thane

Bench: Shri Kuldip Singh & Shri S. Rifaur Rahmanassessment Year: 2011-12

…. Further the Hon’ble Jammu and Kashmeer High Court while rendering its Judgment in the case of Shree Balaji Alloys -vs.- CIT (supra) had relied on the principles laid down by the Hon'ble Apex Court in the case of Sahnev Steel & Press Works - vs. - CIT (1997) 228 ITR 253 (SO & CIT - vs. - Ponni Sugars & Chemicals Ltd. (2008) 306 ITR 392 (SC) and after analyzing the Office Memorandum dated 14-06-2002 behind the grant of Incentive has held that Excise Duty refund granted with the object of creating avenues for Perpetual Employment, to eradicate the social problem of unemployment in the State by accelerated industri…

Addl CIT 3(1), Mumbai vs. Bajaj Hindustan Ltd, Mumbai

In the result, the appeal of the revenue is dismissed and the appeal of the assesse is partly allowed

Bench: Shri Vikas Awasthy & Shri Amarjit Singhacit-3(1)(1) Vs. M/S Bajaj Hindustan Room No. 607, 6 Th Floor, Sugar Ltd. Aayakar Bhavan, ( Ea R L I E R K N O W N A S M / S B A J A J H I N D U S T A N L T D ) Bajaj Bhavan, 2 Nd Floor, M.K. Road, Jamanalal Bajaj, Marg- Mumbai – 400 020 226, Nariman Point Mumbai 400021 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No: Aaacb4351J Appellant .. Respondent M/S Bajaj Hindustan Vs. Acit-3(1)(1) Sugar Ltd. Room No. 607, 6 Th Floor, ( Ea R L I E R K N O W N A S M / S B A J A J H I N D U S T A N L T D ) Aayakar Bhavan, Bajaj Bhavan, 2 Nd Floor, M.K. Road, Jamanalal Bajaj, Marg- Mumbai – 400 020 226, Nariman Point Mumbai 400021 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No: Aaacb4351J Appellant .. Respondent

…essment the assesse has furnished detail of various incentive given under the New Sugar Industry Promotion Policy, 2004. 14. However, the A.O has referred the decision of Hon’ble Supreme Court in the case of Sahney Steel & Press Works Ltd. and Others Vs. CIT (228 ITR 253) wherein held that the character of subsidy in the hands of the recipient whether revenue or the capital, is to be determined having regard to the purpose for which the subsidy is given. The assessing officer stated that subsidies were granted year after year after setting up of the new industry and commencement of production. Such a subsidy coul…

Bajaj Hindustan Ltd, Mumbai vs. ACIT 3(1), Mumbai

In the result, the appeal of the revenue is dismissed and the appeal of the assesse is partly allowed

Bench: Shri Vikas Awasthy & Shri Amarjit Singhacit-3(1)(1) Vs. M/S Bajaj Hindustan Room No. 607, 6 Th Floor, Sugar Ltd. Aayakar Bhavan, ( Ea R L I E R K N O W N A S M / S B A J A J H I N D U S T A N L T D ) Bajaj Bhavan, 2 Nd Floor, M.K. Road, Jamanalal Bajaj, Marg- Mumbai – 400 020 226, Nariman Point Mumbai 400021 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No: Aaacb4351J Appellant .. Respondent M/S Bajaj Hindustan Vs. Acit-3(1)(1) Sugar Ltd. Room No. 607, 6 Th Floor, ( Ea R L I E R K N O W N A S M / S B A J A J H I N D U S T A N L T D ) Aayakar Bhavan, Bajaj Bhavan, 2 Nd Floor, M.K. Road, Jamanalal Bajaj, Marg- Mumbai – 400 020 226, Nariman Point Mumbai 400021 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No: Aaacb4351J Appellant .. Respondent

…essment the assesse has furnished detail of various incentive given under the New Sugar Industry Promotion Policy, 2004. 14. However, the A.O has referred the decision of Hon’ble Supreme Court in the case of Sahney Steel & Press Works Ltd. and Others Vs. CIT (228 ITR 253) wherein held that the character of subsidy in the hands of the recipient whether revenue or the capital, is to be determined having regard to the purpose for which the subsidy is given. The assessing officer stated that subsidies were granted year after year after setting up of the new industry and commencement of production. Such a subsidy coul…

DCIT 4(1)(2), Mumbai vs. Degee Cotsyn Pvt. Ltd., Mumbai

In the result, the appeal of the revenue is dismissed

Bench: Shri Aby T. Varkey, Jm & Shri Gagan Goyal, Am आयकर अपील सं/ I.T.A. No.118/Mum/2020 (निर्धारण वर्ा / Assessment Year: 2014-15) Dcit-4(1)(2) बिधम/ M/S. Degee Cotsyn Pvt. Room No. 640, 6Th Floor, Ltd. Vs. Aayakar Bhavan, M. K. 4Th Floor, Central Buidling Road, Mumbai-400020. No.3, Master Boman Lane, Kalbadevi, Mumbai-400002. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aaccd4304P (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: None Revenue By: Smt. Mahita Nair (Sr. Ar) सुनवाई की तारीख / Date Of Hearing: 14/11/2022 घोषणा की तारीख /Date Of Pronouncement: 06/12/2022 आदेश / O R D E R Per Aby T. Varkey, Jm: This Is An Appeal Preferred By The Revenue Against The Order Of The Ld. Commissioner Of Income Tax (Appeals)-09, Mumbai Dated 04.10.2019 For Assessment Year 2014-15. 2. None Appeared For The Assessee. The Sole Issue Is Regarding The Action Of The Ld. Cit(A) Deleting The Addition Made By The Ao To The Tune Of Rs.5,58,52,480/- Which Assessee Claimed To Be Incentive In Nature Of Capital [Mega Project Incentive In The Form Of Sales Tax Incentive Etc.)] Whereas According To The Ao It Was Revenue In Nature. Therefore, Deduction Claimed By Assessee Was Not Allowed By The Ao. & Thereafter He Also Made Adjustment Of Book Profit Made By The Ao U/S 115Jb Of The Income Tax Act, 1961 (Hereinafter “The Act”) & Disallowed The Same & Thus Assessed The Book Profit At 2 A.Y. 2014-15 Degee Cotsyn Pvt. Ltd. Rs.2,06,95,298/-. Against The Action Of The Ao, The Assessee Preferred An Appeal Before The Ld. Cit(A) Who Was Pleased To Delete The Same. Aggrieved, By The Aforesaid Action Of The Ld. Cit(A), The Revenue Is Before Us.

…of the subsidy was to promote construction of multiplex theatre complexes. Such receipt of subsidy was held on “capital account”. In this decision, the decision of Ponni Sugars & Chemicals 306 ITR 392 (SC) and the decision of Sahney Steel and Press Works Ltd. 228 ITR 253 (SC) has been discussed. It was opined that the test is that the character of the receipt in the 7 A.Y. 2014-15 Degee Cotsyn Pvt. Ltd. hands of the assessee has to be determined with respect to the purpose for which the subsidy was granted. Likewise, in the case of CIT v/s. Kirloskar Oil Engines 364 ITR 88 (Bom.) the said two decisions, namely, M…

DCIT Central Circle -2(2), Maharashtra vs. M/S. Vinati Organics Ltd, Mumbai

In the result, the appeal of the revenue vide

Bench: Shri Amit Shukla & Shri Amarjit Singhdeputy Commissioner Of Vs. M/S Vinati Organics Ltd Income Tax, Cc, 2(2) 1102, Parinee Crescezo, Old Cgo Building, G, Block, Plot No. 806, 8Th Floor, M.K. Road C38/39, Behind Mca, Mumbai – 400020 Bandra Kurla Complex, Bandra East Mumbai – 400 051 स्थायी लेखा सं./जीआइआर सं./ Pan/Gir No: Aaacv6538K Respondent .. Appellant M/S Vinati Organics Ltd Vs. Acit, Cc-2(2) 11Th Floor, 1102, Parinee Crescezo, G, Block, Plot No. C38/39, Behind Mca, Bandra Kurla Complex, Bandra East Mumbai – 400 051 स्थायी लेखा सं./जीआइआर सं./ Pan/Gir No: Aaacv6538K Appellant .. Respondent

…ing up of the industry but after commencement of production for repayment of loan. In such situation, the amount should have been treated as revenue receipt, as per judgment of the Hon 'ble Supreme Court in Sahney Steel & Press Works Ltd. &Ors. v. CTT (1 997) 228 ITR 253 ITA No. 95/Kol/2011 M/s. Gloster Jute Mills Ltd.A.Yr.2007-08 ITA No.445 & 402/Mum/2022 A.Y. 2012-13 10 DCIT, CC-2(2) Vs. M/s Vinati Organics Ltd. 5. We are unable to accept the submission.6. The purpose of scheme under which the subsidy given, has been discussed by the Tribunal. To sustain and prove the competitiveness and overall long term via…

M/S. Vinati Organics Ltd, Mumbai vs. ACIT CC 2(2), Mumbai

In the result, the appeal of the revenue vide

Bench: Shri Amit Shukla & Shri Amarjit Singhdeputy Commissioner Of Vs. M/S Vinati Organics Ltd Income Tax, Cc, 2(2) 1102, Parinee Crescezo, Old Cgo Building, G, Block, Plot No. 806, 8Th Floor, M.K. Road C38/39, Behind Mca, Mumbai – 400020 Bandra Kurla Complex, Bandra East Mumbai – 400 051 स्थायी लेखा सं./जीआइआर सं./ Pan/Gir No: Aaacv6538K Respondent .. Appellant M/S Vinati Organics Ltd Vs. Acit, Cc-2(2) 11Th Floor, 1102, Parinee Crescezo, G, Block, Plot No. C38/39, Behind Mca, Bandra Kurla Complex, Bandra East Mumbai – 400 051 स्थायी लेखा सं./जीआइआर सं./ Pan/Gir No: Aaacv6538K Appellant .. Respondent

…ing up of the industry but after commencement of production for repayment of loan. In such situation, the amount should have been treated as revenue receipt, as per judgment of the Hon 'ble Supreme Court in Sahney Steel & Press Works Ltd. &Ors. v. CTT (1 997) 228 ITR 253 ITA No. 95/Kol/2011 M/s. Gloster Jute Mills Ltd.A.Yr.2007-08 ITA No.445 & 402/Mum/2022 A.Y. 2012-13 10 DCIT, CC-2(2) Vs. M/s Vinati Organics Ltd. 5. We are unable to accept the submission.6. The purpose of scheme under which the subsidy given, has been discussed by the Tribunal. To sustain and prove the competitiveness and overall long term via…

Everest Industries Ltd., Noida vs. Dy CIT Circle- 1, Thane

In the results, appeal filed by assessee is allowed

Bench: Shri Vikas Awasthy & Shri Gagan Goyalm/S Everest Industries Ltd. 2303, Fairfield-A, Majhiwada Bridge, Thane (West)-400601 Pan: Aaace7550N ...... Appellant Vs. Dcit, Circle-1 Ashar I.T. Park, 6Th Floor, B-Wing, 16-Z, Wagle Industrial Estate, Thane (West)-400604. ..... Respondent

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “E”, MUMBAI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER AND SHRI GAGAN GOYAL, ACCOUNTANT MEMBER M/s Everest Industries Ltd. 2303, Fairfield-A, Majhiwada Bridge, Thane (West)-400601 PAN: AAACE7550N ...... Appellant Vs. DCIT, Circle-1 Ashar I.T. Park, 6th Floor, B-Wing, 16-Z, Wagle Industrial Estate, Thane (West)-400604. ..... Respondent ITA No. 1420/Mum/2020 (A.Y. 2005-06) DCIT, Circle-1 Ashar I.T. Park, 6th Floor, B-Wing, 16-Z, Wagle Industrial Estate, Thane (West)-400604. ...... Appellant Vs. Everest Industries Ltd. 2303, Fairfield-A, Majhiwada Bridge, Thane (Wes…

DCIT-Ltu - 2, Mumbai vs. Ambuja Cements Ltd, Mumbai

In the result, the appeal of the revenue is dismissed

…issue in detail in para 54 and 55 of its decision, which reads as under:— "54. Per contra, the learned D.R. Supported the orders passed by the Assessing Officer and the learned CIT (A). Referring to the judgment in Sahney Steel and Press Works Limited v. CIT 228 ITR 253 (SC), he submitted that the impugned sales tax exemption increased the profits of the assessee by eliminating the expenses which the assessee would have had to incur later and therefore the impugned receipts were in the revenue field. He also referred to Explanation (10) to Section 43 (1) of the Income Tax Act inserted in with effect from 01/04/9…

Mahindra & Mahindra Ltd, Mumbai vs. ACIT RG 2(2)(2), Mumbai

In the result, appeal by the assessee is partly allowed for statistical purpose

Bench: Shri Pramod Kumar & Shri Sandeep Singh Karhail

…h adopted in assessment year 2013–14 disallowed the claim stating that the Industrial Promotional Subsidy as Revenue in nature and cannot be construed as capital receipt. The AO also relied upon Hon‟ble Supreme Court‟s decision in Sahney Steels and Press Ltd (228 ITR 253) and decision of Hon‟ble Punjab and Haryana High Court in case of Abhishek industries Ltd (286 ITR 1). The learned DRP relying upon its directions rendered in assessee‟s own case for assessment year 2013–14 rejected the objections filed by the assessee. In conformity, the AO vide final assessment order added an amount of Rs. 13,74,90,999 to total…

DCIT (Ltu) 1, Mumbai vs. Ambuja Cements Ltd, Mumbai

In the result, the appeal of the revenue is thus dismissed

…issue in detail in para 54 and 55 of its decision, which reads as under:— "54. Per contra, the learned D.R. Supported the orders passed by the Assessing Officer and the learned CIT (A). Referring to the judgment in Sahney Steel and Press Works Limited v. CIT 228 ITR 253 (SC), he submitted that the impugned sales tax exemption increased the profits of the assessee by eliminating the expenses which the assessee would have had to incur later and therefore the impugned receipts were in the revenue field. He also referred to Explanation (10) to Section 43 (1) of the Income Tax Act inserted in with effect from 01/04/9…

Asst CIT Ltu, Mumbai vs. Ambuja Cements Ltd, Mumbai

In the result, the appeal of the revenue is dismissed

…subsidy was revenue in nature. This Court after referring to several decisions of the Supreme Court including the case of CIT v. Ponni Sugars and Chemicals Ltd. [2008] 306 ITR 392/174 Taxman 87 and Sahney Steel and Press Works Ltd. v. CIT [1997] 94 Taxman 368/228 ITR 253 (SC) held that, subsidy had not been granted for construction but only after setting up of a new industry which was in the nature of assistance given for the purpose of carrying on business. 7. On further appeal by the Revenue, Supreme Court confirmed the decision of this Court. It was noted that, Maharashtra Government's subsidy was not in form…

Ambuja Cements Ltd ( Formerly Known As Gujarat Ambuja Cements Ltd), Mumbai vs. Addl CIT 3(1), Mumbai

In the result, the appeal of the revenue is thus dismissed

…issue in detail in para 54 and 55 of its decision, which reads as under:— "54. Per contra, the learned D.R. Supported the orders passed by the Assessing Officer and the learned CIT (A). Referring to the judgment in Sahney Steel and Press Works Limited v. CIT 228 ITR 253 (SC), he submitted that the impugned sales tax exemption increased the profits of the assessee by eliminating the expenses which the assessee would have had to incur later and therefore the impugned receipts were in the revenue field. He also referred to Explanation (10) to Section 43 (1) of the Income Tax Act inserted in with effect from 01/04/9…

Gabriel India Limited, 29Th Milestone vs. The Deputy Commissioner of Income Tax, Circle 5(1)(1), Mumbai

In the result, appeal of the assessee is allowed

Bench: Shri.Ri Om Prakashri. Kant & Shri Sandeep Singh Karhailआ.अ.सं.185/मुं/2022 िन.व.2014-15

…block of assets as required under section 43(1) of the Act. On appeal, the Ld.CIT(A), following the findings of the Hon’ble Supreme Court in the case of Ponni Sugars & Chemicals Ltd 306 ITR 392 (SC) and Sahney Steel & Press Works vs Commissioner of Income Tax 228 ITR 253 (SC) upheld the findings of the Assessing Officer by observing as under:- 4.4.10 However, in the case of the present appellant, the Industrial Promotion Subsidy was linked to the investment in the fixed capital. The appellant is free to utilize the subsidy wherever it wants to use. The context of the purpose has to be with respect to the purpose…