TMI Blog2008 (6) TMI 344X X X X Extracts X X X X X X X X Extracts X X X X ..... correct in holding that the excise duty and sale tax collected did not form part of the turnover for he purpose of calculation of deduction. - 226 to 228 of 2008 - - - Dated:- 9-6-2008 - RAVIRAJA PANDIAN K., JANARTHANA RAJA P. P. S. JJ. Mrs. Pushya Sitaraman for the appellant. JUDGMENT The judgment of the court was delivered by K. Raviraja Pandian J.- These appeals are filed by the Revenue against the order of the Income-tax Appellate Tribunal, Madras "C" Bench dated February 10, 2006 in I. T. A. Nos. 2032 to 2034/Mds/2004. The relevant assessment years are 1996-97, 1997-98 and 1998-99. The substantial questions of law formulated in these appeals are as follows : "1. Whether in the facts and the circumstances of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the subsidy received was in respect of a specific asset and the same went to reduce the cost of the asset as 100 per cent. depreciation was granted on the windmill and on that reasoning he brought the said amount for the purpose of taxation. Aggrieved against the order of assessment in respect of the above three years, the assessee filed appeals to the Com-missioner of Income-tax (Appeals), who allowed the appeals in favour of the assessee and directed the Assessing Officer to delete the addition on account of sales tax and excise duty components added to the total turnover and further directed the Assessing Officer to delete the addition of subsidy as well. Not satisfied with the order of the Commissioner of Income-tax (Appeals), the Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be held against the Revenue. 6. In respect of the second and third questions of law relating to windmill subsidy in respect of the assessment year 1996-97, they are also covered by the decision of the Supreme Court against the Revenue in the case of CIT v. P. J. Chemicals Ltd. reported in [1994] 210 ITR 830, wherein the Supreme Court has held that (headnote) "Where Government subsidy is intended as an incentive to encourage entrepreneurs to move to backward areas and establish industries, the specified percentage of the fixed capital cost, which is the basis for determining the subsidy, being only a measure adopted under the scheme to quantify the financial aid, is not a payment, directly or indirectly, to meet any portion of the "actual ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
