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Income Tax Appellate Tribunal - Ahmedabad

Gujarat Flurochemicals Limited,, ... vs The Dcit, Circle-1(1)(1),, Baroda on 10 October, 2019

          आयकर अपील य अ धकरण, अहमदाबाद  यायपीठ - अहमदाबाद ।
                IN THE INCOME TAX APPELLATE TRIBUNAL
                         AHMEDABAD - BENCH 'D'

        BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER
                           AND
      SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER
                  Misc. Application No.229/Ahd/2019
                                  IN
                 आयकर अपील सं./ ITA No. 116/Ahd/2016
                   नधा रण वष /Assessment Year: 2010-11
     Gujarat Fluorochemials Ltd.                 DCIT, Cir.1(1)(1)
     2 Floor, ABS Tower
      nd                                   Vs Vadodara.
     Old Padra Road
     Baroda 390 007
     PAN : AAACG 6725 H

          अपीलाथ / (Appellant)                  यथ / (Respondent)
             Assessee by :             Ms.Urvashi Shodhan, AR
             Revenue by :              Shri Satish Solanki, Sr.DR

     सन
      ु वाई क  तार ख/Date of Hearing           :   04/10/2019
     घोषणा क  तार ख /Date of Pronouncement :       10/ 10/2019


                                  ORDER


PER RAJPAL YADAV, JUDICIAL MEMBER : Present Misc.

Application is directed at the instance of the assessee pointing out apparent error in the order of the Tribunal passed in ITA No.116/Ahd/2016 for the Asstt.Year 2011-12.

2. The assessee has pleaded that a bunch of fifteen appeals involving number of years has been decided by the Tribunal vide order dated 28.6.2019. A common issue, whether receipt of proceeds on sale of carbon credits deserve to be treated as capital receipts, and required to MA No.229/Ahd/2019 -2- be excluded from taxable income, was involved in the Asstt.Years 2007- 08 to 2011-12. For the Asstt.Years 2007-08, 2008-09 and 2009-10, it was raised by way of additional grounds of appeal, whereas in the Asstt.Years 2010-11 and 2011-12, it was specifically raised. The Tribunal while taking cognizance of this issue in para 112 failed to take note of ground no.5 of ITA No.116/Ahd/2016 in the Asstt.Year 2010-11. According to the assessee, though the Tribunal has discussed the issue regarding admissibility of additional grounds as well as on merit, whether receipts on sale of carbon credits deserves to be treated as capital receipts and requires to be excluded from taxable income. According to the assessee, it is an inadvertent error crept it he order of the Tribunal. The ld.counsel for the assessee while taking us through the record contended that the Tribunal has relied upon its earlier orders passed in the case of the assessee for the Asstt.Years 2012-13 and 2013-14 as well as decision of Hon'ble jurisdictional high Court in the case of Alembic Ltd. Vs. DCIT. She contended that Tribunal's order in the case of assessee for the Asstt.Years 2012-13 and 2013-14 has also been upheld by the Hon'ble jurisdictional High Court. Therefore, she contended that apparent error be rectified.

3. The ld.DR, on other hand unable to controvert this contention of the ld.counsel for the assessee.

4. We have duly considered rival submissions and gone through the record carefully. A perusal of the Tribunal's order from paragraph-112 on page no.77 to 116 on page no.88 we are satisfied that an inadvertent error crept in the order of the Tribunal which requires rectification. Accordingly, we modify it as under:

MA No.229/Ahd/2019 -3-
112. In the first line of this paragraph i.e. in the remaining ground no.4 in ITA No.117/Ahd/2016 for the Asstt.Year 2011-12, the line is hereby replaced and be read as under:
"112. In the remaining ground no.5 of ITA No.116/Ahd/2016, and ground no.4 in ITA No.117/Ahd/2016 for the Asstt.Years 2010-11, 2011-12 be read. "

5. Similarly, we make it clear to the AO that this ground be treated as allowed in the Asstt.Year 2010-11. In other words, receipt from proceeds on sale of carbon credits in the Asstt.Year 2010-11 be also treated as capital receipts. This direction is given in accordance with Tribunal's direction in all other assessment years. With the above observation, the application of the assessee is treated as allowed.

6. In the result, Misc. Application of the assessee is allowed.

Pronounced in the Open Court on 10th October, 2019.

    Sd/-                                                  Sd/-
(PRADIP KUMAR KEDIA)                                 (RAJPAL YADAV)
ACCOUNTANT MEMBER                                    JUDICIAL MEMBER

Ahmedabad;      Dated,   10/10/2019