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TMI Blog2021 (9) TMI 1340X X X X Extracts X X X X X X X X Extracts X X X X ..... llowed. We direct the Assessing Officer accordingly. This mistake is rectified. Treatment of sales Tax incentive and fertilizer subsidy as income eligible for claiming of deduction under section 80IB - HELD THAT:- We noted that the facts relating to the issue whether the sales tax incentives or fertilizers subsidy is capital receipt or revenue receipt, the adjudication by Tribunal is not there. Even, the facts are not dealt with by the Tribunal in its order. Hence, without commenting on the facts, we recall the order of the Tribunal on this issue and direct the registry to fix this appeal. - MA No. 136/Mum/2021 (Arising in ITA No. 2439/Mum/2011 for Assessment Year 2003-04) - - - Dated:- 17-9-2021 - Shri Mahavir Singh, VP And Shri S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 80M of the Act. It was contended that by the said interest expenditure the Assessing Officer has also correspondingly increased of profit and gains of the business of the said amount. Tribunal by mistake treated the same as academic in nature and has not adjudicated despite the fact that the Tribunal has adjudicated the issue in Para 14 as under:- 14. We have heard the rival submissions and perused the relevant materials on record. There is no dispute that in the instant case, the assessee-company has not incurred any expenses for earning dividend income. Surplus funds time to time are invested in shares, securities, units etc. of reputed company. In the impugned assessment year, there is merit in the contentions of the Ld. counsel tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fied. Hence, we are of the view that this interest expenditure need to be allowed. We direct the Assessing Officer accordingly. This mistake is rectified. 7. The assessee has also raised another mistake apparent from record in order of the Tribunal and cited the ground No.5 which read as under:- 5. The learned Commissioner of Income Tax (Appeals) erred in upholding the disallowance of deduction under section 80(IB) of ₹ 25,31,96,667, in respect of the fertilizer unit of Haldia: a. Without going through the detailed submissions made, b. Holding that the Sales Tax Incentive Scheme does not have a direct nexus with the activities of the industrial unit; c. Holding that the Fertilizer Subsidy provided by the g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of ₹ 3.31 crores, it is the contentions of the assessee that it sold its products at notified prices and charged sales tax in the invoices ; in the books of accounts, sales tax collected was shown as sales tax incentive and not deposited the Government as per the Industrial Development Policy of the State; sales tax remission/subsidy is arising only on account of sales from fertilizers to the farmers, which clearly indicates that the sales tax remission has direct nexus with the activities of the industrial undertaking. Having examined the materials available on record, we find that the AO has not examined in proper perspective the above contentions of the assessee. As the above contentions have a direct bearing on the above gr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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