TMI Blog2005 (10) TMI 233X X X X Extracts X X X X X X X X Extracts X X X X ..... ect memo was issued and the assessee, while making good the deficiency in payment of the fee, has pleaded for condonation of delay in filing of the appeal on the ground that same got delayed with the earlier engaged Counsel and by filing affidavit of the concerned counsel and relying upon Hon'ble Supreme Court decision in the case of M.K. Prasad v. P. Arumugam AIR 2001 SC 2497 - decided on 30-7-2001, Collector, Land Acquisition v. Mst. Katiji [1987] 167 ITR 471 - decided on 19-2-1987 and Bidasaria Bros. v. Addl CCT [2004] 3 STJ 73 (MP), it was pleaded for admission of the appeal as there was a bona fide reason for not presenting the appeal within the time and discrepancy in payment was also due to wrong advice given by the then Counsel for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eal against this order, the CIT(A), Gwalior vide order dated 17-7-1998 set aside the assessment order directing the Assessing Officer to decide the case afresh in the light of the decision of the Hon'ble Supreme Court in Sahney Steel Press Works Ltd v. CIT [1997] 228 ITR 253. While making fresh assessment, the Assessing Officer was of the view that the core issue involved in the judgment of the Hon'ble Supreme Court cited by the CIT(A) in his order was the time factor of the receipt of subsidy. He found that in the case of the assessee, the unit started production in the financial year 1987-88 and the subsidy was received by the assessee in the financial year 1992-93 which is after setting up of the industry and commencement of production ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urther appeal and while reiterating the submissions as made before lower authorities, it was pleaded for setting aside the orders of authorities below. By filing copy of the State Investment Subsidy and Sanction Rules, 1989, it was pleaded that though the subsidy was granted after the commencement of the production but it was applied for before such commencement and subsidy received is a capital receipt. Therefore, same cannot be treated as revenue receipt and decision of Hon'ble Supreme Court in the case of Sahney Steel Press Works Ltd. is not applicable to the facts of this case. It was, thus, pleaded for treating subsidy of Rs. 4,65,496 as capital receipt and to exclude the addition made by the Assessing Officer and confirmed by learne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... subsidy was made to hold the growth of industry and not for supplementing the profits of the entrepreneurs. Under the scheme the quantum of subsidy is determined with reference to the fixed capital investment and not on the basis of sale or profit. The assessee received 15 per cent capital subsidy in a single stroke and not in any recurring manner on fixed capital investment of Rs. 31,03,309 in land, building, plant and machinery, electric installations, dies, etc. The working capital has been specifically excluded from computation of fixed capital for this purpose and important condition for grant of subsidy is that the industrial unit must remain in production at least for a period of five years after it goes into production otherwise it ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
