2020 (3) TMI 182 - SC - Income Tax

Characterization of income - transport subsidy received - revenue or capital receipt - HELD THAT - In respect of same assessee, the High Court for the subsequent assessment year 2001-2002 2009 (9) TMI 572 - GAUHATI HIGH COURT has answered the question on the basis of the exposition of this Court in particular in Jai Bhagwan Oil Flour Mills vs. Union of India Ors. 2009 (5) TMI 630 - SUPREME COURT . Admittedly, this decision is accepted by the Department and no appeal is preferred against the same. - Decided in favour of the assessee

Summary

Issues:
- Whether transport subsidy received by the assessee during certain assessment years is a revenue receipt or a capital receipt.

Analysis:
The Supreme Court heard appeals challenging a judgment by the High Court of Gauhati regarding transport subsidy received by the assessee during the assessment years from 1997-1998 to 2000-2001. The main issue was to determine the nature of the subsidy, whether it should be treated as a revenue receipt or a capital receipt. The High Court had previously ruled on a similar issue for the subsequent assessment year 2001-2002 in a different case involving the same assessee. The High Court's decision in that case was based on a previous Supreme Court judgment in 'Jai Bhagwan Oil & Flour Mills vs. Union of India & Ors.' The Department had accepted the High Court's decision for the subsequent year, and no appeal was filed. The Supreme Court held that since the principle established in the previous decision applied to the same assessee, it should also apply to the assessment years in question. Therefore, the appeals in the present case were successful on the same terms.

Consequently, the issue being conclusively decided in favor of the assessee, there was no need to proceed with reassessment on that particular matter. The Supreme Court disposed of the appeals and pending applications accordingly.