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2024 (6) TMI 806 - AT - Income TaxIssues involved: Appeal against the order of CIT(A) concerning taxability of Excise Duty subsidy u/s 143(3) of the Income Tax Act, 1961 for AY 2018-19. Summary: Issue 1: Taxability of Excise Duty subsidy The assessee appealed against the order of CIT(A) regarding the taxability of Excise Duty subsidy, claiming it to be capital in nature and not taxable. The CIT(A) dismissed the claim stating it was not made before the AO or revised in the ROI. The assessee argued that the higher taxable income was declared due to a mistake and should not estop them from correcting it. The ITAT held that authorities must act in accordance with law and only collect legitimate tax dues. Referring to various judgments, it was established that if an income is not taxable under the Act, it cannot be taxed based on estoppel. The ITAT remitted the issue to the AO for proper determination of the taxability of Excise Duty subsidy, allowing the assessee to provide necessary evidence. In conclusion, the ITAT allowed Ground No.1.3 of the appeal for statistical purposes, partially allowing the appeal of the assessee. The issue was set aside to the AO for proper determination of the taxability of Excise Duty subsidy in accordance with the law.
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