9911796707
TMI Blog2004 (11) TMI 87X X X X Extracts X X X X X X X X Extracts X X X X ..... rence made under section 256(1) of the Income-tax Act, 1961 at the instance of the Revenue (Commissioner of Income-tax) by the Tribunal in R.A. No. 12/Ind of 1997 arising out of an order dated December 20, 1996, passed in I.T.A. NO. 911/Ind of 1994 (annexure C) to answer the following question of law by this court: "Whether, on the facts and in the circumstances of the case, the Tribunal is corre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was that it is in the nature of capital expenditure, whereas the contention of the Revenue was- it is in the nature of revenue expenditure. The Assessing Officer and the Commissioner of Income-tax (Appeals) held against the assessee. In their opinion, it was in the nature of revenue expenditure and hence, has to be taxed treating it to be in the nature of revenue expenditure in the hands of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... question referred to us no more remains res integra and stands answered by the decision of the Supreme Court in the case of Sahney Steel and Press Works Ltd. v. CIT [1997] 228 ITR 253 and CIT v. Rajaram Maize Products [2001] 251 ITR 427. It is in this case their Lordships examined the question as to which kind of subsidy received by an assessee can be regarded as capital receipt or revenue receip ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... heme meant for disbursing the subsidy in question, this court cannot hold that it is a revenue receipt. We do not agree. True it is that the Tribunal did not discuss the issue in detail before coming to the conclusion and simply placed reliance on the earlier decision of the Tribunal, yet in our opinion, a perusal of the order of the Assessing Officer and the Commissioner of Income-tax (Appeals) d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e issue by narrating full facts and then discuss the issue in detail in the context of the decided cases. The Tribunal being the last so far as the facts are concerned, a higher responsibility is cast by the Legislature to decide the cases by assigning cogent reasons. As a consequence of the aforesaid discussion, we answer the question in favour of the Revenue and against the assessee. No costs. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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