Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2004 (11) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2004 (11) TMI 87 - HC - Income TaxPower subsidy received - Revenue/Capital receipt - "Whether Tribunal is correct in law in holding that the power subsidy received by the assessee-company is a capital receipt and, therefore not chargeable to income-tax?" - Tribunal did not discuss the issue in detail before coming to the conclusion and simply placed reliance on the earlier decision of the Tribunal, yet in our opinion, a perusal of the order of the AO and the CIT (Appeals) does indicate the nature of subsidy received by an assessee. Since, the subsidy in question was given to the assessee for power consumption, we have no hesitation in coming to a conclusion that it has to be and it is in fact a revenue receipt in the hands of the assessee. - Tribunal failed in their duty in properly deciding the appeal. It is the legal duty of the Tribunal to deal with the issue by narrating full facts and then discuss the issue in detail in the context of the decided cases – Thus, we answer the question in favour of the Revenue and against the assessee.
|