9911796707
TMI Blog2016 (11) TMI 1050X X X X Extracts X X X X X X X X Extracts X X X X ..... n the next financial year 2010-11 relevant year 2011-12 on realization basis, therefore after taking into consideration the decision of Hon’ble Supreme Court in the case of CIT Vs. M/s. Excel Industries Ltd., (2013 (10) TMI 324 - SUPREME COURT ), we hold that the assessee is entitled for DEPB credit in the year under consideration and therefore the additions made by the AO are hereby deleted. The AO is directed to re-compute the income in the terms of aforementioned decision. Therefore, these grounds raised by the Assessee are allowed. - I.T.A. No. 7118/Mum/2014 - - - Dated:- 23-9-2016 - SHRI JASON P. BOAZ, AM AND SHRI SANDEEP GOSAIN, JM For The Appellant : Shri Dilip T. Worah For The Respondent : Ms. Anu Krishna Agarwal O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case was selected for scrutiny and notice was served upon the assessee, seeking reply of the assessee. Assessment order was passed by ACIT whereby a sum of ₹ 11,09,321/- being the amount of DEPB credit was added back to the total income of the assessee. 3. Aggrieved by the order of the AO, assessee preferred an appeal before CIT(A) and the CIT(A) after considering the case of the assessee dismissed the appeal of the Assessee. 4. Aggrieved by the order of CIT(A), the assessee preferred the present appeal before us on the grounds mentioned hereinabove (paragraphs 1 to 4 of grounds of appeal). 5. Ground Nos. 1 to 4 are interconnected and relates to addition made by Revenue Authority under DEPB entitlements amounting to ₹ 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2.3 I have considered the facts of the case, order passed by the AO and the submission made by the appellant. It is seen that the appellant follows the mercantile system of accounting. Therefore, the income out of transfer DEPB by way of sale or otherwise has to be offered as income for the year under the mercantile system of accounting followed by the appellant, which the appellant has failed to do. Further, as per the provisions of Section 28(iiid) of the Act, the sale / transfer of DEPB is a taxable business receipt and as and when the appellant is entitled for the same. The appellant's stand that the same is offered for tax on cash basis in next assessment year is not acceptable as the appellant follows mercantile system ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, we found that the assessee accounted the income from sale of DEPB license on cash basis and the same is followed consistently by the assessee on year to year basis. We have also observed that the same procedure is being followed by the assessee in the following years and the assessee has offered the said amount for tax in the year of receipt from sale of DEPB license. Since the facts of the present case are similar to the facts of the case decided by Hon ble Apex Court wherein in the Hon ble Supreme Court while relying upon the earlier judgment of Hon ble Apex Court in the case of Commissioner of Income Tax V/s. Shoorji Vallabhdas and Co., 46 ITR 144 (SC) has held as follows: Income Tax is a levy on income. No doubt, the Income Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
