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2011 (4) TMI 866 - HC - Income TaxSubsidy receivable on sale of text books - whether amount not received either by the end of the final year or till date could be brought to tax as income - assessee is an instrumentality of the State Government, and a government company within the meaning of section 617 of the Companies Act - Held that:- The admitted position is that the gross receipts of the assessee exceeds Rs. one crore. Applicability of section 10(23C)(iiiad) to the present case is obviated because the provision is applicable to those educational institutions with turn-over upto Rs. one crore. The gross receipts of the present assessee exceeds Rs. one crore and cannot, therefore, be within the mischief of section 10(23C)(iiiad) of the Act. In pursuit of its charitable purpose, it registers some income in its balance-sheet will not per se make it to be a profit-making organization. An organization of this size has to maintain its infrastructure and the staff which needs money - Equally important is that the subsidy from public funds are meant to carry on the undertaker’s trade and business which are trading receipts, that is, are to be brought into account in arriving at the balance of profits orgains - The judgment of the Supreme Court in Assam State Text Book Production and Publication Corporation Ltd. vs. C I T [ 2009 (10) TMI 60 - SUPREME COURT ], is particularly relevant in the present context and deals with taxability of the subsidy received by the appellant from the Assam Government - Decided in the favour of the assessee
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