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2014 (1) TMI 1239 - HC - Income TaxBuffer stock subsidy - Nature of Receipt Liability for taxation u/s 28(4) of the Act Deduction on account of buffer stock subsidy - Whether grain-in-aid received by the assessee would be revenue receipts Held that:- The subsidy was received for holding buffer stock by the appellant and to meet expenditure incurred to hold on the buffer stock as required and all expenses relatable to maintaining buffer stock were debited. The subsidy given by the Central Government to compensate or reimburse the expenses was a revenue and taxable receipt - Relying upon Commissioner of Income Tax Vs. Ponni Sugars & Chemicals, Ltd.& Ors [2008 (9) TMI 14 - SUPREME COURT] - the character of the receipt in the hands of the assessee has to be determined with respect to the purpose for which the subsidy is given - The subsidy was given to compensate the burden on account of interest, storage and insurance etc. for holding the Buffer Stock of sugar i.e. to compensate the assessee in running his business which is clearly revenue receipt - No substantial questions of law arises in the appeals Decided against Assessee.
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