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TMI Blog2013 (12) TMI 785X X X X Extracts X X X X X X X X Extracts X X X X ..... of law:- "1. Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was legally justified in holding that the sum of Rs. 3,68,66,310/- representing 'Capital Replenishment Reserve' by way of surplus free sale of sugar quota under the Scheme known as 'Sugar Incentive Scheme', which is inseparable part of trading receipts, is in the nature of Capital Receipt and the same is not liable to tax ? 2. Whether on the facts and in the circumstances of the case the Hon'ble I.T.A.T. was justified in law in confirming the order of the Ld. Commissioner of Income Tax (appeals) deleting the disallowance of Rs.2,25,904/- made by the Assessing Officer on account of amount transferred to molasses reserve fund without ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Hon'ble I.T.A.T. was justified in confirming the order of the Ld. Commissioner of Income Tax (Appeals) deleting the addition of Rs. 20,870/- made on account of rental charges of gas cylinders without appreciating the facts of the case ?" Heard Sri Shambu Chopra, learned counsel for the Department and Sri Ashish Bansal, learned counsel for the assessee. After hearing both the parties and on perusal of the record, it appears that the substantial question of law no.1 is pertaining to 'Capital Replenishment Reserve' by way of surplus free sale of sugar quota under the scheme known as 'Sugar Incentive Scheme'. This issue is squarely covered as per the ratio in the case of CIT vs. Ponni Sugars & Chemicals LTD. & ORS. 2008 306 ITR 392 (SC) w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 05 where it was held that:- "We have considered the submissions and the provisions, referred to above. Molasses storage maintenance fund was created pursuant to the statutory provisions and it is the statutory duty of the assessee, dealing with the manufacture and sale of sugar, to set apart such fund, which can be withdrawn and spent only with the permission of Sugar Controller. The assessee carrying on business of manufacture and sale of sugar has to set apart amount, as provided in the Act, for the molasses storage maintenance fund and thus, it has statutory requirement. Further, the amount so deposited in the aforesaid fund can only be utilized for provision and maintenance on adequate storage facilities for molasses subject to permiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consideration of the Court:- 1. Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was correct in upholding the action of the Commissioner of Income Tax (Appeals) in deleting the disallowance of Rs.24,000/- made on account of lease rent, without appreciating the facts of the case? 2. Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was correct in upholding the action of the Commissioner of Income Tax (Appeals) in allowing a relief of Rs. 3,94,550/- to the assessee in respect of the disallowance made on account of interest paid on borrowed funds, without appreciating the facts of the case? 3. Whether on the facts and in the circumstances of the case, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to M/s. K.L. Scientific as broker's commission for importing the gas cylinders. This finding has been upheld by the Tribunal. There is no illegality in the same. 5.The appeal has no merit and is dismissed" Since the questions of law raised in this appeal, inter se between the parties, are covered in view of the judgment of the Court in the earlier previous Assessment Year, we do not find any need to decide the questions all over again. The Income Tax Appeal is accordingly dismissed." Substantial question of law No.5 is related to the depreciation. The CIT (A) has allowed depreciation on lorry and trucks at the rate of 40% instead of 33.33 per cent as allowed by the Assessing Officer. The Tribunal upholds the order passed by the CIT (A) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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