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2022 (5) TMI 120 - SCH - Income TaxNature of receipt - subsidy as capital or revenue in nature - HELD THAT:- High Court by the impugned judgment and order has remanded the matter to the A.O. to pass a fresh order based on the independent analysis as to whether the amount raised by way of subsidy is capital or revenue in nature, we see no reason to interfere with the impugned judgment and order passed by the High Court. Validity of revision u/s 263 - as observed by the High Court, the A.O. accepted the case on behalf of the assessee that the amounts received was capital in nature without any discussion and also noted that the order passed by the A.O. was unreasoned order - HELD THAT:- Considering the above, when the Commissioner was of the opinion that the assessment order passed by the A.O. was prejudicial to the interest of the Revenue, it cannot not be said that the CIT committed any error and/or passed any order without jurisdiction. In view of the above, we see no reason to interfere with the impugned judgment and order passed by the High Court. The Special Leave Petition stands dismissed. However, it is observed and in fact it is specifically observed by the High Court in the impugned order that the A.O. will pass a fresh order based upon his independent analysis as to whether the amount received by way of subsidy was capital or Revenue in nature, we direct accordingly. The A.O. to pass a fresh order in accordance with law and on merits without, in any way, influenced by any of the observations made by the CIT passed in exercise of powers under Section 263 of the IT Act and the observations made by the CIT shall be treated only for the purpose of exercise of powers under Section 263 only. The A.O. to pass appropriate order in accordance with law and on its own merits independently.
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