Mahindra & Mahindra Limited Vs ACIT (ITAT Mumbai)
ITAT Mumbai remitted matter of taxability of industrial promotion subsidy back to CIT(A) for de novo meritorious adjudication as details and documents demanded thereon were not furnished by the assessee.
Facts- The present appeal has been preferred by the assessee. Assessee has contested on the addition made towards disallowance of claim in respect of industrial promotional subsidy received by the assessee from the State Government of Maharashtra under the package scheme of incentives, 2007, to be treated as capital receipt, not chargeable to tax. According to the assessee, industrial promotional subsidy is ought to be treated as capital receipt even in the light of amended section 2(24)(viii) for normal provisions as well as book profit u/s. 115JB of the Act.
Conclusion- Held that claim of the assessee is more in respect of the amended definition whereby it has attempted to justify the claim even within the amended definition of income, effective from Assessment Year 2016-17 which has not been elaborately discussed and dealt with by ld. CIT(A) while adjudicating on the issue. Further, we note that ld. CIT(A) has made observations in respect of certain documents and details which assessee could not furnish and therefore, the matter could not be taken up holistically in absence of such details and documents. Considering the facts of the case and the position of law, in the interest of justice and fair play, we find it appropriate to accept the prayer made by the ld. Counsel to remit the matter back to the file of ld. CIT(A) on this issue for de novo meritorious adjudication.
