9911796707
TMI Blog2002 (3) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... By the said order dated November 29, 2001, this court answered the question referred to it for its opinion by the Income-tax Appellate Tribunal, which is to the following effect: "Whether, on the facts and in the circumstances of the case, the grants received from the Government by the assessee-company, which is a 100 per cent. Government company, to enable the company to function, was a capital receipt or revenue receipt?" It is not in dispute that the Steel Authority of India Limited (in short the "SAIL") is a Government company within the meaning of section 617 of the Indian Companies Act. It was incorporated on January 24, 1973. It received a sum of Rs. 4 lakhs on February 28, 1973, Rs. 20 lakhs on December 10, 1973 and Rs. 7 lakhs on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would augment its profit and loss account but they are receipts to enable its function. If the payments had been made by the Government to enable the company either to augment the profit and loss account, they could have been treated as trading receipts or revenue receipts, hence taxable. But this is not the case before us. The amounts had been received and adjusted in accordance with the arrangement between the Government who is the 100 per cent. shareholder and the company which is a 100 per cent. Government company. Therefore, looking from the broader point of view, it can be taken as a payment from self to self, which cannot be taken as a trading receipt or revenue receipt. A question was put up to a senior Departmental Representative ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learned counsel appearing on behalf of the assessee is that as the company is a 100 per cent. Government company, the amount received from the Central Government would not come within the purview of the definition of income. We do not agree. It is not in dispute that the assessee is liable to pay income-tax. Whether any "income" would come within the purview of taxable income or not has to be considered keeping in view the provisions of the Income-tax Act, in terms whereof it was for the assessee to show that the grants in aid given to it by the Central Government would not come within the purview of the expression "income". In a case where a question comes up for consideration as to whether grants in aid would come within the mischief of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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