TMI Blog2003 (5) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... was not justified in holding that the power subsidy received by the assessee-company was a capital receipt and therefore, not chargeable to income-tax - IT Ref. No. 59 of 1997 - - - Dated:- 9-5-2003 - Judge(s) : DEEPAK VERMA., S. K. SETH. JUDGMENT The judgment of the court was delivered by S.K. SETH J.-This reference under section 256(1) of the Income-tax Act, 1961, at the instance of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the opinion that the power subsidy was revenue in nature and, as such, is liable to tax as income of the assessee. Consequently, he added the amount in the assessee's hand as income chargeable to tax. This was confirmed in appeal by the appellate authority. On a further appeal being filed by the assessee-company before the Tribunal, it deleted the addition, following its earlier decision given ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the said addition from the assessee's income. It has been held by their Lordships of the Supreme Court in a catena of cases that the objects of power subsidy granted to an industrial undertaking on the percentage of its electricity bills is to meet a certain percentage of the expenditure on power. The receipt is, therefore, revenue in nature in the hands of the assessee. Sahney Steel and Pre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee and it was rightly added by the Income-tax Officer for the assessment year 1992-93. Thus, the reference is to be answered in favour of the Revenue and against the assessee. The reference is disposed of accordingly with no order as to costs. Let a copy of the order be sent under the seal of this court and the signature of the Registrar to the Appellate Tribunal which shall/pass suc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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