9911796707
TMI Blog2003 (5) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... ming false and excessive subsidy from the Government?" - We answer the question in the negative, i.e., in favour of the Revenue and against the assessee. - - - - - Dated:- 7-5-2003 - Judge(s) : Y. R. MEENA., SHASHI KANT SHARMA. JUDGMENT The judgment of the court was delivered by Y.R. MEENA J. - On an application under section 256(1) of the Income-tax Act, 1961, the Tribunal has referred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee. The Assessing Officer, therefore, had to re-cast the manufacturing profit and loss account, applied the proviso to section 145(2) of the Income-tax Act, 1961 and assessed the income of the assessee at Rs. 1,60,79,957. The Assessing Officer has also disallowed the deduction under sections 80HH and 80-I of the Act on the enhanced income by way of excessive subsidy showing bogus sale and purchase ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f SSP and the unsubsidised production of SSP was sold by it at higher prices. The relief under sections 80HH and 80-I was related to the act of an assessee carrying on the industrial undertaking in a backward area of the State. In carrying out such activity in such an area and during the relevant period, if an assessee is found to have involved itself in earning unaccounted money, it cannot be hel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee, in our view, the Tribunal has committed an error in allowing deduction on the subsidy amount, which has been claimed on showing bogus enhanced purchase and sales by the assessee. Assessing Officer as well as the Commissioner of Income-tax (Appeals) were justified in denying deduction under sections 80HH and 80-I on such income, which has nothing to do with the industrial activities. In t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
