Case Law Details
DCIT Vs Kashmir Steel Rolling Mills (ITAT Amritsar)
The undisputed facts in the present case are that the assessee claimed excise duty refund and interest subsidy as revenue receipt in the return of income and the assessment order was passed on 17.12.2009. The Hon’ble Jurisdictional High Court of J & K in the case of Shree Balaji Alloys vs CIT (supra) vide order dated 31.03.2011, has held the said excise duty refund and interest subsidy as capital receipt. The assessee moved an application u/s 154 of the Act before the AO which was rejected. The arguments made by the Ld. DR that there cannot be any rectification, if the mistake is committed by the assessee and it can only be rectified when it is a mistake done by the AO. Now, the question arises whether power u/s 154 can be invoked when the issue is decided in favour of assessee by the Jurisdictional High Court after the order by an authority has been passed.
HC held that section 154 has been enacted to enable the authorities to rectify the mistake whether the mistake is done by assessee or by AO. The legislative intent in section 154 is not to allow a mistake to continue. A liberal construction of the statute has to be made else the object of the legislation shall be forfeited. Accordingly, the arguments by Ld. DR cannot help the Revenue. Therefore, in the circumstances and facts of the present case, Hon’ble Jurisdictional Court of J & K having held the Excise Duty Refund and Interest Subsidy received by the assessee as capital receipts is a decision subsequent to the decision of AO dated 17.12.2009 where such receipts have been accepted as revenue as returned by the assessee. Accordingly, in view of the decision in the case of Smt. Arun Luthra (supra) and Kil Kotagiri Tea and Coffee Estates Ltd. (supra), we are of the view that there is a mistake apparent from record which is rectifiable u/s 154 of the Act and the Ld. CIT(A) has rightly directed the AO to carry out the necessary rectification and the order of the Ld. CIT(A) is found to be well reasoned one and we find no infirmity in the same.
FULL TEXT OF THE ORDER OF ITAT PUNE
This appeal of the Revenue arises from the order of the CIT(A)- 1, Ludhiana, dated 16.12.2013 for the assessment year 2007-08. The Revenue has raised the following grounds of appeal:
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