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TMI Blog2022 (9) TMI 231X X X X Extracts X X X X X X X X Extracts X X X X ..... and assessee already offered said income for taxation. It is pertinent to note that the analogy given by PCIT while directing the Assessing Officer, the PCIT has failed to appreciate that the treatment given by the Assessing Officer to EPCG claim in the present assessment year depends on the refund which is actually received in subsequent year. Thus, this clearly amounts to change of opinion which is not permissible under the provisions of Section 263. PCIT cannot say that the Assessing Officer has not verified this claim and thus this amounts to prejudice to the interest of Revenue. The appeal of the assessee allowed. - ITA No.85/Ahd/2022 - - - Dated:- 8-8-2022 - SMT. ANNAPURNA GUPTA, ACCOUNTANT MEMBER AND MS. SUCHITRA KAMBLE, JUDI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ipal Commissioner of Income Tax observed that the Balance Sheet of the assessee shows that on Assets side the amount of Rs.5,45,14,045/- which includes EPCG claim receivable of Rs.5,06,94,581/- During the assessment proceedings notice was issued to explain supporting document for determining the true nature of the claim of EPCG and its details of income and expenditure and Profit Loss account. In its submission the assessee stated that EPCG is claim receivable from Government for incentive provided for export done by the assessee and the said income was already recorded in the books of accounts. However, the PCIT observed that as per Profit Loss account the revenue from operation sales of traded goods was Rs.1,17,71,255/- only and other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... im without making any specific observation in the Assessment Order. The Ld. AR submitted that non-observation cannot amount to non-verification on the part of the Assessing Officer. Without prejudice to these submissions, the ld. AR further submitted that the assessee is eligible for refund of Excise Duty for purchase of machinery. In fact the Superintendent of Excise and Customs has issued certificate certifying that the supplier has paid the excise duty and has not claimed any credit or refund of the same. Thus, the assessee has received refund from Government of EPCG claim in subsequent years and thus the same was not recorded in the books of account for this particular A.Y. The Ld. AR pointed out that EPCG claim in its books of account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s given all the details and further clarified that the refund from the Government of EPCG claim was received in subsequent years. The Assessing Officer has specifically asked the assessee during assessment proceeding to explain with supporting documents regarding EPCG claim of receivable of Rs.5,06,94,581/- in assessee s assets and its treatment given by assessee in its income expenditure/Profit Loss account. Further, it is on record that the assessee has given the details related to this claim as the said claim is in respect of government incentive and assessee already offered said income for taxation. It is pertinent to note that the analogy given by PCIT while directing the Assessing Officer, the PCIT has failed to appreciate that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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