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TMI Blog2018 (12) TMI 1204X X X X Extracts X X X X X X X X Extracts X X X X ..... subsidy is to be treated as capital receipt in the hands of the assessee. Though, the assessee is in the original return of income had included the same in its hand, but the same is to be excluded being not taxable. Accordingly, we uphold the order of Commissioner of Income Tax (Appeals) and dismiss the grounds of appeal No. 1 to 4 raised by the Revenue. Deduction on account of belated payments of employee’s contribution to PF and ESIC - Held that:- As relying on M/s. Hindustan Organics Chemicals Ltd. [2014 (7) TMI 477 - BOMBAY HIGH COURT] where the assessee has paid the said amount due on account of employee’s contribution to PF and ESIC before due date of filing of return of income, which is mentioned in the assessment order itself, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to determine as to whether any incentive received is to be treated as capital receipt or revenue receipt have been comprehensively laid down and the fact that the assessee had its own investments made from its own sources to become eligible for the Incentive Scheme of the state government and the incentive received was not for the purpose of setting up of any new unit or industry. In light of the above said judgement and facts, the incentive received by the assessee company under the Package Scheme of Incentives, 2007 of the state government need to be treated as revenue receipt. 4. The Ld. CIT(A) also erred in appreciating the decision of the Hon 'ble Kerala High Court in the case of CIT Vs. Ruby Rubber Works Limited (178 ITR 181) (Ke ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce, none appeared on behalf of assessee. The matter was adjourned from the previous date wherein the Ld. DR for the Revenue was asked to verify whether the issue stands covered by the orders of Tribunal in earlier years. The Ld. DR for the Revenue has furnished on record the copy of Tribunal order for the assessment year 2012-13, wherein similar issue has been decided in the case of assessee. Accordingly, we proceed to decide the present appeal ex-parte the assessee and after hearing the Ld. DR for the Revenue. 4. The issue raised in the grounds of appeal No. 1 to 4 is against the order of Commissioner of Income Tax (Appeals) in directing the Assessing Officer to treat the subsidy received of ₹ 1,26,09,361/- as capital receipt. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y as a revenue receipt, but the same was by an inadvertent mistake and since the subsidy received was a capital receipt, the same should have been excluded while computing the income of the assessee. The Commissioner of Income Tax (Appeals) observed that where the assessee had offered the income in its return of income which was not revised, then in view of the Hon ble Supreme Court of India in Goetze (India) Ltd. Vs. Commissioner of Income Tax (supra), the Assessing Officer had not accepted the plea of assessee. However, after considering the written submissions filed by the assessee and the utilization of subsidy received under the Package Scheme of Incentives, 2007 and in view of the provisions of section 43 Explanation 10 of the Act, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income Tax (supra) and held that the subsidy received by the assessee was capital in nature. During the year under consideration out of the balance due of ₹ 2.36 crores, the assessee has received ₹ 1.26 crores during the year under consideration and in view of the decision of Tribunal in assessee s own case in hand in the earlier year the said subsidy is to be treated as capital receipt in the hands of the assessee. Though, the assessee is in the original return of income had included the same in its hand, but the same is to be excluded being not taxable. Accordingly, we uphold the order of Commissioner of Income Tax (Appeals) and dismiss the grounds of appeal No. 1 to 4 raised by the Revenue. 9. Now, coming to the ground of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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