TMI Blog1996 (1) TMI 50X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Income-tax Act, 1961 (for short the " Act "), the following two questions are referred for our opinion : " (1) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is right in law in holding that the amount received by the assessee from the MMTC cannot be considered as income of the assessee ? (2) Whether, on the facts and in the circumstances of the case, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the development grant had been received by the assessee for acquiring new machinery and replacement of old machinery. The Tribunal took the view that the amount having been received for acquiring new machinery and for replacement of old machinery cannot be treated as a revenue receipt and must be treated only as a capital receipt. The Tribunal is stated to have followed its earlier decisions in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a revenue receipt. In that view of the matter, we do not think there is any reason to upset the view taken by the Tribunal in this regard. We answer the first question referred for our opinion in the affirmative and against the Revenue. The second question referred for our opinion does not really arise in this case. Hence, we decline to answer the same. References are answered accordingly. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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