TMI Blog2004 (11) TMI 87X X X X Extracts X X X X X X X X Extracts X X X X ..... e no hesitation in coming to a conclusion that it has to be and it is in fact a revenue receipt in the hands of the assessee. - Tribunal failed in their duty in properly deciding the appeal. It is the legal duty of the Tribunal to deal with the issue by narrating full facts and then discuss the issue in detail in the context of the decided cases – Thus, we answer the question in favour of the Revenue and against the assessee. - - - - - Dated:- 29-11-2004 - Judge(s) : A. M. SAPRE., ASHOK KUMAR TIWARI. JUDGMENT The judgment of the court was delivered by A.M. Sapre J.- This is an income-tax reference made under section 256(1) of the Income-tax Act, 1961 at the instance of the Revenue (Commissioner of Income-tax) by the Tribunal in R. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be in the nature of capital expenditure. Accordingly, the view taken by the Assessing Officer and the Commissioner of Income-tax (Appeals) was reversed, giving rise to making of this reference to this court at the instance of the Revenue under section 256(1) of the Act to answer the aforementioned question. Heard Shri R.L. Jain, learned senior counsel with Ku. V. Mandlik, learned counsel for the Revenue, and Shri G.M. Chafekar, learned senior counsel with Shri D.S. Kale, learned counsel for the assessee. Having heard learned counsel for the parties and having perused the record of the case, we are inclined to answer the question in favour of the Revenue (Commissioner of Income-tax) and against the assessee. Indeed, in our consider ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , yet in our opinion, a perusal of the order of the Assessing Officer and the Commissioner of Income-tax (Appeals) does indicate the nature of subsidy received by an assessee. Since, the subsidy in question was given to the assessee for power consumption, we have no hesitation in coming to a conclusion on the strength of the decision of Sahney Steel [1997] 228 ITR 253 (SC) that it has to be and it is in fact a revenue receipt in the hands of the assessee. In view of the aforesaid discussion, we do not subscribe to the view taken by the Tribunal. Instead we prefer to uphold the view taken by the Assessing Officer and the Commissioner of Income-tax (Appeals). We are also constrained to observe that the Tribunal failed in their duty in prope ..... X X X X Extracts X X X X X X X X Extracts X X X X
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