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2013 (9) TMI 736 - ALLAHABAD HIGH COURTWhether incentive received by the assessee by way of additional quota for free sale sugar which is directly connected with the business activities of the assessee, was on capital account and hence not taxable as a revenue receipt – Held that:- Following the judgment in the case of CIT Vs. Ponni Sugars & Chemicals Ltd [2008 (9) TMI 14 - SUPREME COURT], in which it was held that main eligibility conditions for the scheme (Sampat Incentive Scheme) was that the incentive had to be utilized for repayment of loans taken by the assessee to set up new units or substantial expansion of an existing unit, and the subsidy received by assessee was not in the course of a trade but was a capital nature – In the present case, the incentive received is considered as Capital in nature – Decided against the Revenue. Whether allowance made u/s 43B in respect of unpaid production incentive bonus covered under section 36 (i) (ii) of the I.T. Act –Held that:- The Company was claiming allowance of Rs.13,98,899/- on the unpaid productivity incentive bonus as on 31.3.1990 - Allowance is permissible on actual payment of production linked incentive bonus to the workmen of the Company, and not on the amount reserved for that purpose, which is kept as unpaid - Allowance under Section 37 of the Act in respective of productivity linked incentive bonus can be claimed as deduction, provided the assessee-company paid the amount in the previous year, relevant to the assessment year in question. The allowance cannot be claimed for unpaid part of production linked incentive bonus – Decided in favor of Revenue.
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