TMI Blog2004 (9) TMI 94X X X X Extracts X X X X X X X X Extracts X X X X ..... received by the assessee is a revenue receipt. - - - - - Dated:- 21-9-2004 - 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), to answer the following question of law referred to this court by the Tribunal (the ITAT) which arises out of the order of the Tribunal, dated August 28, 1997, passed in I.T.A. No. 426/Ind of 1993: "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the assessee was correct in claiming power subsidy as capital receipt?" Heard Shri R.L. J ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ence, thus, accepting the contention of the assessee the amount was not held liable to tax being regarded as in the nature of a capital receipt. It is against this finding of the Tribunal rendered in the second appeal filed by the assessee, that the Revenue prayed to the Tribunal for a reference to be made to this court under section 256(1) of the Act. As observed supra, the Tribunal acceded to the request so made by the Revenue in Reference Application No. 128/Ind of 1997 which as stated supra arose out of an order dated August 28, 1997, passed in I.T.A. No. 426/ Ind of 1993 by the Tribunal. This is how the aforementioned question has been referred to this court for answer. At the outset, we may take note of the fact that the Tribunal wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aking help from the decisions of the Supreme Court and if there is no direct authority of the Supreme Court on the point then of the jurisdictional High Court and lastly of any other High Court. Not taking note of the facts of the case, nor the legal position and not even referring to the facts of the case involved in those decisions on which the reliance is placed for deciding the appeal amounts to non-exercise of the appellate powers by the Tribunal. It equally results in total non application of judicial mind resulting in setting aside of the so-called view taken by the Tribunal in such cases. Now coming to the issue involved, in our opinion, the issue is squarely covered in favour of the Revenue by the authoritative decision of the Su ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
