TMI Blog2014 (12) TMI 933X X X X Extracts X X X X X X X X Extracts X X X X ..... tal receipt would depend upon the nature and purpose of a subsidy – thus, the order passed by the Tribunal is set aside and the matter is restored to the Tribunal for re-determining the question whether sales tax subsidy is a revenue or a capital receipt by reference to the nature and purpose of the subsidy – Decided in favour of assessee. - Income Tax Appeal No. 146 of 2014 - - - Dated:- 18-12-2014 - Rajive Bhalla And B. S. Walia,JJ. For the Appellant : Ms. Radhika Suri, Senior Advocate with Ms. Rinku Dahiya For the Respondents : Mr. Rajesh Sethi, Senior Standing Counsel with Mr. Sachin Gupta, Advocate and Mr. Arun Biriwal ORDER Rajive Bhalla, J. (Oral) By way of this order, we shall decide Income Tax Appeals ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Circle, Ludhiana and another, a Division Bench of this court has, after considering the judgment in Ponni Sugar and Chemical Limited's case (supra), remitted the matter to the Tribunal to record an opinion, whether sales tax subsidy availed by the assessee is a revenue or capital receipt, after considering its nature and purpose. Counsel for the revenue relies upon the judgment in Abhishek Industries Limited's case (supra), but is not in a position to either distinguish the judgment in Ponni Sugars and Chemicals Limited's case (supra) or deny the fact that a similar controversy has already been restored to the Tribunal in Industrial Organics Pharmaceuticals Limited's case (supra). We have heard counsel for the parti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not meant for a running unit. The second benefit, according to learned counsel, lay in the rebate of excise duty under which the assessee was required to pay excise duty on the manufacture of additional quota of free sale sugar. According to learned counsel, in judging the character of the incentive, the purpose test is applicable. In other words, according to learned counsel, the character of the receipt in the hands of the assessee had to be determined with respect to the purpose for which the subsidy was given and that the point of time at which it is paid or its source or its form was irrelevant. In this connection, learned counsel also places reliance on the same judgment of this court in the case of Sahney Steel and Press Works Ltd ..... X X X X Extracts X X X X X X X X Extracts X X X X
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