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TMI Blog1985 (9) TMI 148X X X X Extracts X X X X X X X X Extracts X X X X ..... t to the cost of an Ambassador car from the principals. The principals had celebrated the centenary year and in that connection had brought out a Suiting Incentive Scheme under which the assessee received the aforesaid amount. Extracts from the relevant pamphlet containing the details of the incentive scheme are as under: "Bombay Dyeing has recently introduced several new and exciting varieties in its range of Polyester and Polyester-blended suitings... we can thus offer discriminating customers a truly extensive selection of exclusive suitings like... ... to enable you to stock and sell more of these fabulous suitings, we offer Bombay Dyeing Retailers a host of incentives like: A higher margin For delivery at destination Publicit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the period 1-12-1978 to 5-12-1979. A statement showing invoice-wise, the value of suitings purchased by us is enclosed for your records. We take this opportunity to thank you for your co-operation in arranging timely supplies of suitings, which enabled us to achieve the target of Rs. 8 lakhs. We once again thank you for all the efforts you have taken in making the gift scheme for suitings, a grand success. Thanking you" The reply dated 1-3-1980 from the distributors to the assessee is as below: "Congratulations: Your unstinted efforts coupled with personal qualities of high business skill have borne fruits. Our principal Bombay Dyeing Mfg. Co. Ltd., Bombay, expressed great appreciation for your indefatigable endeavour in a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 50,000. 5. Before us, the learned counsel for the assessee again relied on the order of the Tribunal in the case of Rasi Exports (P.) Ltd. and the other judicial pronouncements on which reliance was placed before the AAC. It was reiterated that the receipt was a capital receipt and in the nature of a bounty or gift and could not be subjected to tax. 6. The learned departmental representative, on the other hand, submitted that there was a direct nexus between the receipt of the amount and the business carried on by the assessee and the amount was clearly taxable under the provisions of section 28 of the Act, and in particular, the provisions of section 28(iv). 7. We have considered the rival submissions. From the facts set out, it i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cause there, when goods were exported, the assessee had no knowledge that the foreign customer would send them gifts of collar turning machine. The Tribunal has clearly pointed out in para 4 of its order that the receipt of such a gift was never in contemplation at any stage and further in para 5 they have stated that there was no material to show that the machine was received in pursuance of an agreement either tacit or written. The decision of the Supreme Court in the case of Groz-Beckert Saboo Ltd. has also no application to the facts in the present case. This is not a case where the gift has been received as a capital asset unlike in that case where the gifts were received along with certain machinery supplied for setting up a factory i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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