MILIND N.JADHAV,J. - (1.) The present appeal under Section 260A of the Income Tax Act, 1961 takes exception to the order dated 28.09.2016 passed by the Income Tax Appellate Tribunal, 'J' Bench, Mumbai (hereinafter referred to as "ITAT/Tribunal"), interalia, allowing the assessee's appeal i.e. ITA No.33/Mum/2015. The order has arisen out of the orders of CIT (Appeals)-39, Mumbai, in Appeal Nos. CIT-39/IT-14-15 and 16/2013- 14 both of even date 02.10.2014. Assessments were finalised by DCIT, Central Circle 18 & 19, Mumbai for Assessment Years 2008-09, 2009-10 and 2010-11 under the provisions of Section 153A read with Section 143(3) of the Income Tax Act, 1961(hereinafter referred to as "the said Act") by order dated 25.03.2013. The impugned order is for the Assessment Year 2008-09.
(2.) The assessee is a widely held public limited company engaged in various activities including production of sponge iron, galvanized sheets and cold-rolled coils through its steel plants located at Dolve and Kalmeshwar in Maharashtra. The assessee filed original return of income on 30.09.2008 for Assessment Year 2008-09 declaring loss at Rs.104,17,70,752/- under the provisions of Section 139(1) of the said Act. The assessee's case was selected for scrutiny under Section 143(2) of the said Act on 03.09.2009.
(3.) During pendency of the assessment proceedings, a search was conducted under Section 132 of the said Act on the ISPAT Group of companies on 30.11.2010. 3.1. Following the search, notice under Section 153A of the Act was issued. In response, assessee filed return of income declaring total loss at Rs.419,48,90,102/- on 29.03.2012. In this return of income assessee made a new claim for treating gain on pre-payment of deferred VAT/sales tax on Net Present Value (NPV) basis for an amount of Rs.318,10,93,993/- as "capital receipt". ;