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| Chamber welcomes SC ruling | | |
EARLY TIMES REPORT
JAMMU, Feb 23
Jammu Chamber of Commerce & Industries (JCCI) has welcomed the decision of Supreme Court which has set aside the charging of Income Tax on the refund of Excise Duty treating it as an Income not derived as a result of Industrial activity.
In a press statement issued here today, Chamber president Y V Sharma said that in a significant development having bearing on J&K Industry, the Supreme Court in a landmark judgment has dismissed the appeal filed by Income Tax Department SLP (Civil No. 24055/2009) against the decision of Delhi High Court wherein Delhi High Court while deciding in favour of Industry, in the case of CIT – IV Vs Dharam Pal Prem Chand Ltd. ITA 1441 /2006, has held that Excise duty refund granted to Industrial Units located in North Eastern States is not liable to income tax and is eligible for admissible deduction under section 80 IB of the Income Tax Act.
This decision of Supreme Court will bring respite to local Industry as similar scheme of excise duty refund is operating in the state also and the Income Tax department has started taxing this excise duty refund by treating it as an Income not derived from industrial activity and thus not eligible for admissible deduction U/s 80 IB of the Income Tax Act, he added
With this decision, it is hoped that the Income Tax department will not raise any fresh demands against the issue which is now well settled and issue refunds against the demands already collected expeditiously, said YV Sharma.
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