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TMI Blog2009 (4) TMI 86X X X X Extracts X X X X X X X X Extracts X X X X ..... of the court was delivered by K. RAVIRAJA PANDIAN, J. - The appeals are filed by the revenue against the order of the Income Tax Appellate Tribunal, Madras A Bench dated 16.7.2003 made in I.T.A.No.1118, 1119/Mds/1996 and 1795 and 1796/Mds/1998 respectively. The relevant assessment years are 1991-92, 1992-93, 1993-94 and 1994-95. The substantial questions of law formulated for entertainment of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the amount received on account of higher free sale of sugar was a revenue receipt includible in the total income of the assessee and confirmed the order of the assessing officer. The addition is confirmed on account of excise duty debited in the profit and loss account which was in fact was not an ascertained liability or a real liability of the excise duty payable by the assessee. These additions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ive would not form part of income from business assessable to tax under Section 28(iv) of the Income Tax Act, 1961. For coming to the said conclusion the Division Bench relied on the decision of this court in the case of Commissioner of Income Tax Vs. Ponni Sugars and Chemicals Ltd., reported in 260 ITR 605. 5. In the case of Commissioner of Income Tax Vs. Madurantakam Co-operative Sugar Mills L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to set up new units or for substantial expansion of an existing unit. The subsidy received by the assessee was not in the course of a trade but was of a capital nature.
7. In view of the above enunciation of law by the Supreme Court, the questions of law have to be answered against the Revenue and the appeals are liable to be dismissed and as such dismissed. X X X X Extracts X X X X X X X X Extracts X X X X
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