×Latest Case Laws on Income Tax by various Income Tax Appellate Tribunals in India
These are the latest case laws decided by various Income Tax Appellate Tribunals (ITAT) of India on Income Tax which have been published recently. The case laws are open for discussion and we invite expert comments from our members on its applicability and effect on relevant issues.
The present appeal has been filed by the revenue against the order dated 05 05.2017 passed by the Commissioner of Income Tax (Appeals)-50, Mumbai [hereinafter referred to as the “CIT(A)”] relevant to the assessment year 2014-15.
2. The revenue has raised the following grounds: -
“1. "Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) is justified in allowing the assessee's claim of deduction u/s.801A(4)(iv) in respect the windmills units after availing on all the unit’s depreciation benefits u/s.801A for 100 percent deduction on eligible profit in the initial years and after the costs are depreciated?"
2. "Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) is justified in allowing the assessee's claim of deduction u/s.801A that the receipt in the nature of carbon credit are capital in nature and not liable to be taxed although not derived from industrial undertakings even though the assessee has disputed the quantum credit?"
3. The appellant prays that the order of the CIT(A) on the above grounds be set aside and that of the Assessing Officer be restored.
4. The appellant craves leave to amend or alter any ground and/or add new grounds which may be necessary.”
3. The brief facts of the case are that the assessee filed its return of income on 27.11.2014 for the A.Y. 2014-15 declar ng total income to the tune of Rs.114,72,28,380/-. The case was selected for scrutiny under CASS. Notice u/s 143(2) of the Act was issued and served upon the assessee. Thereafter, the assessee filed the revised return of income on 31.03.2016 declaring total income to the tune of Rs.114,94,55,020/-. The income was increased by Rs.22,26,640/-. Thereafter, the notice u/s 142(1) of the Act was also issued and served upon the assessee. The assessee company was engaged in the business of manufacture and production of transformer oils, lubricating oils, white oils and other petroleum products at its industrial units situated at Thane Belapur Road, Pawne, Maharashtra and Silvassa and was also in the business of generation of electric power from its wind mill units situated in the States of Maharashtra, Karnataka and Tamil Nadu. The assessee company has maintained separate books of account for each of its units and has duly furnished Form 10CCB of the Act together with statements of profit and loss and balance sheet for each of its units. The assessee also derived income from property and by way of dividend and capital gains from investment in shares and mutual fund schemes. The assessee claimed the deduction u/s 80- IA of the Act of Rs.20,58,71,683/- in respect of 15 wind mill units which are hereby mentioned below.: