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TMI Blog1982 (6) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... w, which has been referred to us by the Income-tax Appellate Tribunal is as follows : Whether, on facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the amount of dash subsidy received by the assessee on its exports would be attributable to the priority industry eligible for relief under section 80E of the Income-tax Act, 1961, and, therefore, relief unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dy although it was not directly derived from the priority industry, was " attributable " to the priority industry. Following an earlier decision of theirs in another assessee's case, the Tribunal, disagreeing with the ITO, held that the cash subsidy granted by the Government to the assessee must be regarded as profits SC attributable" to the priority industry. The earlier decision, which the Tribu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the sale of depreciated machinery used in a priority industry, can be regarded as part of the profits " attributable " to the priority industry. The Supreme Court held that although there might be some doubt whether the balancing charge can be regarded as profits derived from the priority industry, certainly such profits must be brought within the wider expression "attributable to". The, judgmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y were entitled, cash subsidy would not have been given by the Government to the assessee. In these circumstances, we think the Tribunal was quite right in applying the principles enunciated by this court as well as the Supreme Court in the decisions referred to above and in coming to the conclusion that the cash subsidy must be regarded as " attributable " to the priority industry. The present ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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