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2017 (3) TMI 1686 - DELHI HIGH COURTGrants receipt from the Govt. of NCT of Delhi for meeting revenue expenses, i.e. by way of ex-gratia payment upon voluntary retirement - Assessing Officer (AO) treated this receipt as income and sought to tax it - CIT(A)’s interpretation of the payable entry with respect to this was that it was an outstanding liability vis-a-vis Govt. of NCT of Delhi and the Pension Trust vis-a-vis the assessee - Held that:- We are in agreement with the conclusion as recorded by the first appellate authority that since the Government of Delhi, which is 100% owner of the assessee company, the employees who opted for VRS [Voluntary Retirement Scheme] were to be paid their dues for which approved provident fund did not have adequate/planned investment thus the government decided to provide long term capital loans of ₹ 35.90 crores to the assessee which was passed on to the Pension Fund Trust enabling the company to make payments to the employees. In view of the above noted factual matrix of the case on the issue we are unable to see any valid reason to interfere with the conclusion of the CIT(A) thus we uphold the same - no substantial question of law
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