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2015 (4) TMI 944 - HC - Income TaxSubsidy received from Government of Gujarat - capital receipts OR revenue receipts (Trade Receipts) - Held that:- The learned Tribunal has materially erred in not following and/or distinguishing the decision of the Hon'ble Supreme Court in the case of Sahney Steel and Press works Ltd. (1997 (9) TMI 3 - SUPREME Court) wherein held that if payments in nature of subsidy from public funds are made to the assessee to assist him in carrying on his trade or business, they are, therefore, trade receipts. We are of the opinion that the substantial question of law raised/involved in the present tax appeal is squarely covered against the assessee and in favour of the Revenue in view of the decision of Sahney Steel & Press works Ltd. (supra). Under the circumstances, the learned Tribunal has materially erred in treating the amount of subsidy of ₹ 19,82,600/- as capital in nature and has materially erred in quashing and setting aside the order passed by the Assessing Officer confirmed by the learned CIT(A). - Decided in favour of revenue.
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