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TMI Blog2022 (12) TMI 458X X X X Extracts X X X X X X X X Extracts X X X X ..... e claim of the assessee was rejected by the Ld. AO as well as the Ld. CIT(A) on the ground that the same cannot be claimed by the assessee in the rectification petition u/s 154 since the same was not claimed in the return of income filed by the assessee in view of the decision of Hon'ble Apex Court in case of Goetze India Ltd. vs CIT in 157 Taxman 1. The Ld. CIT(A) did not consider the fact that the assessee's case is squarely covered by judicial decisions on similar facts in the case of Sharda Cropchem Ltd. vs DCIT in 71 ITR (Trib) 141 & DCIT & Kashmir Steel Rolling Mills in 130/Asr/2014. Therefore, the action of the Ld. CIT(A) in rejecting the claim of the assessee is unjustified and the claim needs to be allowed. 2. That the Ld. CIT(A) erred in confirming the action of the Ld. AO in rejecting the assessee's rectification petition filed u/s 154 claiming the Subsidy of Rs. 11,78,31,170/- received by the assessee as Industrial Promotion Assistance (|PA) from the state Govt. under West Bengal Industrial Promotion (Assistance to Industrial Units) Scheme, as Capital Receipt in place of Revenue Receipt. The Ld. CIT(A) did not consider the fact that the IPA received by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting the assessing officer to exclude these sales tax subsidy received from the Government from the total income offered by the assessee for taxation. Reliance was also placed on various other decisions and reference made to other details contained in the index paper book containing 83 pages. Per contra, the ld. D/R vehemently argued supporting the orders of the lower authorities. 5. We have heard rival contentions and perused the record placed before us. 6. The only issue raised before us by the assessee is that, the subsidy received by it as industrial promotion assistance from the State Government of West Bengal was capital in nature but was wrongly included in the income offered to tax. For rectifying this mistake, the assessee filed applications u/s 154 of the Act but both the lower authorities have denied the said claim. Reliance placed on the decision of the Co-ordinate Bench of the Tribunal in the case of Ritum Jain (supra) wherein we find that a similar issue has been adjudicated by this Tribunal deciding in favour of the assessee observing as follows: - "4.1. We have heard the rival contentions of the ld. representatives of both the parties and gone through the recor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1572/2013 vide order dated 23rd March, 2016 has deliberated upon various case laws and also on the Article 265 of the Constitution of India to hold that no tax can be levied or collected except by the authority of law and that if the assessee has by mistake or inadvertence or on account of ignorance, included in his income any amount which is non-taxable or is not income within the contemplation of law, the assessee may bring the same to the notice of the Assessing Officer, to which, if, the AO is satisfied, he may grant the assessee necessary relief and refund the tax paid in excess. The Hon'ble Delhi High Court has referred to in this respect to the decision of the Hon'ble Supreme Court in the case of "CIT vs Shelly Products and another" reported in 261 ITR 367. The Hon'ble Delhi High Court has also referred to CBDT Circular No. 14(XL-35) of 1955 dated 11.04.1955, wherein, the CBDT has directed that the officers of the department must not take advantage of ignorance of an assessee as to his rights and that it is one of their duties to assist a tax payer in every reasonable way, particularly, in the matter of claiming and securing reliefs and that they should take the initiative i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... : "Officers of the department must not take advantage of ignorance of an assessee as to his rights. It is one of their duties to assist a tax payer in every reasonable way, particularly in the matter of claiming and securing reliefs and in this regard the officers should take the initiative in guiding a tax payer where proceedings or other particulars before them indicate that some refund or relief is due to him. This attitude would, in the long run, benefit the department, for it would inspire confidence in him that he may be sure of getting a square deal from the department. Although, therefore, the responsibility for claiming refunds and reliefs rests with the assesses on whom it is imposed by law, officers should - (a) draw their attention to any refunds or reliefs to which they appear to be clearly entitled but which they have omitted to claim for some reason or other; (b) freely advise them when approached by them as to their rights and liabilities and as to the procedure to be adopted for claiming refunds and reliefs". 23. A reading of the circular shows that a duty is cast upon the assessing officer to assist and aid the assessee in the matter of taxation. They are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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