9911796707
TMI Blog2023 (10) TMI 391X X X X Extracts X X X X X X X X Extracts X X X X ..... (1) of the Act had not made any adjustment under any head of income regarding the aforesaid issue and neither refund is reduced nor any demand is created. CIT(A) further observed that once an amount is offered in the return of income by an assessee, the same cannot be sought to be reduced in the appellate proceedings. We are unable to comprehend ourselves to accept to this proposition of the ld. CIT(A). The assessee is always at liberty to plead that a particular receipt has been erroneously offered to tax in the return. It is trite law that there is no estoppel against the statute. Since no factual finding has been given by the ld. CIT(A) on the detailed concerns raised by the assessee , we deem it fit and appropriate, in the interest o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... processing initiation u/s 143(1) of the IT Act, 1961 that the income of Rs. 2,15,96,571-from scrips granted under MEIS of the Foreign Trade Policy 2015-20 being capital receipts should not from part of the book computed u/s 115/B of the IT Act, 1961 notwithstanding the fact the same form part of the book profit as per the return of income. 3. We have heard the rival submissions and perused the materials available on record. The assessee is a limited company engaged in the business of manufacturing of steel. The return of income for the Asst Year 2018-19 was filed on 26.10.2018 declaring loss of Rs 1,81,92,071/- under normal provisions of the Act and book profit of Rs 1,42,31,007/- u/s 115JB of the Act. Further a revised return of incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ffering these incentives to exporters was to increase the flow of foreign exchange into India. The ide was to increase exports of notified goods such as cardamom, coffee, pepper, rubber, iron and steel, timber, plywood and glass manufactured in India. The intent for providing awards through duty credit scrips , as spelt out in the Foreign Trade Policy Document, had been to offset domestic inefficiencies, both infrastructural and regulatory, associated in the process of manufacturing goods for export, to provide a level playing field to the exporters and also to promote the manufacturers to promote employment potential, incentive to produce goods with higher export intensity thereby ensuring India s export competitiveness. These rewards are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efit as per Note No. 17 under the head Revenue from Operations as per the audited balance sheet Rs 3,61,41,698/- includes MEIS receipt of Rs 2,25,61,137/- and also loss of Rs 9,64,566/- and net amount of revenue from MEIS licences thus was Rs 2,15,96,571/-. 5. It was pleaded before the ld. CIT(A) that the above receipt though offered to tax as revenue receipt in the return, would have to be construed as a capital receipt not chargeable to tax. The assessee also submitted the various documents in support of its contentions together with some case laws decided on the issue before the ld. CIT(A). Similarly, the said receipt of MEIS licences was also sought to be excluded from the book profits computed u/s 115JB of the Act on the plea that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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