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2011 (1) TMI 409 - HC - Income TaxSubsidy - Technology Up-gradation Fund Scheme - Capital or Revenue nature - subsidy received by the assessee under the Technology Up-gradation Fund Scheme (TUFS) of Ministry of Textiles, the Assessing Officer held the receipt of subsidy as revenue in nature - HELD THAT:- In the view taken in Sahney Steel & Press Works Ltd.'s case (1997 (9) TMI 3 - SUPREME COURT ) could not be applied in the present case, as in said case the subsidy was given for running the business. For determining whether subsidy payment was 'revenue receipt' or 'capital receipt', character of receipt in the hands of the assessee had to be determined with respect to the purpose for which subsidy is given by applying the purpose test, as held in Sahney Steel & Press Works Ltd.'s case (supra) itself and reiterated in later judgment in CIT v. Ponni Sugars & Chemicals Ltd. [2008 (9) TMI 14 - SUPREME COURT] referred to in the impugned order of the Tribunal. In view of above, since the matter is covered by judgment of the Hon'ble Supreme Court in Ponni Sugars & Chemicals Ltd.'s case (supra) against the revenue, no substantial question of law arises.
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