2002 (12) TMI 632

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..... stated a case and referred the following questions of law in relation to the assessment years 1986-87 to 1988-89 :- 1. Whether on the facts and in the circumstances of the case the Tribunal is right in law in holding that the incentive provided by the Government of India and also subsidy given by the State Government are capital receipts not liable to tax? 2. Whether on the facts and in .....

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..... Government is concerned, this Court in T.C. No. 492 of 1996 by judgment dated 16-9-2002 considered the similar issue and has taken the view that the subsidy amount received by the assessee would be capital receipts. Accordingly, the Tribunal was not correct in holding that the incentives provided by the Government of India are capital receipts and not liable to tax and accordingly, that part o .....

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..... t the amount transferred to Molasses Storage Fund under a statutory obligation did not form part of the assessee s total income. Following the said decision of this Court, we answer the third question of law referred to us in the affirmative in favour of the assessee and against the revenue. In view of the circumstances of the case, there will be no order was to costs. - - TaxTMI - TMITax - I .....

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