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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 ..... l on 16.07.2019 and the relevant ground reads as under: - "Additional Ground No.2 of Appeal before the Hon. Income Tax Appellate Tribunal. The learned Assessing Officer erred in adding back a sum of Rs.7,45,00,000/- towards allocation of interest expenses towards dividend income, under the head business income." 3. The learned Counsel for the assessee also drew our attention to the main ground No.3 regarding allocation of interest expenses towards dividend income under the head business income and the relevant ground No.3 read as under:- "3. The learned Commissioner of Income Tax (Appeals) erred in confirming the disallowance u/s 80M/Section 14A with a direction to rework the same in respect of indirect expenses." 4. It was contende ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issue in favour of the assessee. Facts being identical, we follow the above orders of the Co-ordinate Bench and allow the 3rd ground of appeal. Consequently, the related additional ground becomes academic in nature." 5. When these were pointed out to the learned Sr. Departmental Representative, he fairly conceded the position. 6. After considering the submissions, we direct the Assessing Officer that the Tribunal on identical facts for Assessment Years 1992-93 to 1994-95 has decided the issue in favour of the assessee and hence, ground No.3 is decided in favour of the assessee. Since, the assessee has also raised additional ground No. 2, towards allocation of interest expenses towards dividend income which is not academics as noted by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... engal Incentive Scheme, 1999), was a capital receipt not chargeable to tax under the Income Tax Act." 9. The assessee has claimed that the treatment of sales Tax incentive and fertilizer subsidy as income eligible for claiming of deduction under section 80IB of the Act but the assessee by way of additional ground urged that the sales tax incentive and fertilizer subsidy provided by the government as price concession is a capital receipt and hence, it is not at all to be taxed. Therefore, it was contended that the issue has arisen before the Tribunal for the first time and i.e. whether the receipt by way of sales tax incentives and fertilizer subsidy was taxable under the act or not. The learned Counsel for the assessee before us stated tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ional ground is allowed for statistical purposes." 10. Now, the learned Counsel for the assessee before us stated that the issue of assessee's appeal is covered by the decision of Hon'ble Apex Court in the case of CIT vs. Shree Balaji Alloys (2017) 80 Taxmann.com 239 and CIT vs. Chaphalkar Brothers 400 ITR 279 and the jurisdictional High court in CIT vs. Kirloskar Oil Engine Ltd. 364 ITR 88. 11. When these facts were confronted to the learned SR. Departmental Representative, he agreed that there is no adjudication on additional ground by the Tribunal. 12. 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. E ..... X X X X Extracts X X X X X X X X Extracts X X X X
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