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TMI Blog1995 (11) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... P. VENKATARAMA REDDI J.--The Commissioner of Income-tax, Andhra Pradesh-I, Hyderabad, seeks reference of the following questions for the opinion of this court in these two income-tax cases filed under section 256(2) of the Income-tax Act, 1961 : Income-tax Case No. 108 of 1991 : "(1) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is correct in law in holding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, the Tribunal is correct in law in holding that the cash subsidy granted by the Government of Andhra Pradesh to producers for production of films in Andhra Pradesh is not related to or meant as an adjustment against or for defraying the cost of production of such films ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal is justified in law in deleting the amount of Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of this court in CIT v. Sahney Steel and Press Works Ltd. [1985] 152 ITR 39 was distinguished on the ground that the subsidy in that case related to the amount paid after the plant had started production. But if the State gives a subsidy to set up a new plant, it was held to be not a trading receipt. It was observed that the subsidy granted was in the nature of inducement to producers to produce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ations, a reference is made to rule 9A only as it was in force during the relevant assessment year. But, bereft of the proviso, how far and to what extent the Revenue can draw support from rule 9A is at best a controversial point. The point having not been raised and decided by the Tribunal, we do not think it proper to direct reference of question No. 2 in these applications. We, therefore, dism ..... X X X X Extracts X X X X X X X X Extracts X X X X
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