2011 (8) TMI 779

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..... E TAX REFERENCE NO 3 OF 1998 - - - Dated:- 30-8-2011 - Shri Satish K Agnihotri, Shri Radhe Shyam Sharma, JJ. Shri Rajeev Shrivastava Advocate with Shri Sameer Shrivastava Advocate for the petitioner Judgement ORDER (ORAL) 1. Heard learned counsel for the parties. 2. This reference has been filed by the Revenue under Section 256 (2) of the Income Tax Act, 1961 (for short .....

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..... are capital receipts. In further appeal, the Income Tax Appellate Tribunal (for short "the ITAT") relying upon the decision of the Supreme Court in Commission of Income Tax v. P.J. Chemicals Ltd.2, wherein the Supreme Court held that the subsidies given by the Government as incentives to the industrial undertakings in backward areas are capital in nature and cannot be taxed under the head revenue .....

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