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TMI Blog1996 (6) TMI 80X X X X Extracts X X X X X X X X Extracts X X X X ..... ddition of Rs. 9,502. The first appellate authority had placed reliance on the decision of the Tribunal in I. T. A. No. 193/(Coch) of 1980. The matter was taken up before the Income-tax Appellate Tribunal. The Tribunal also by its judgment dated November 26, 1985, relied on its own judgment dated August 27, 1981, in I. T. A. Nos. 593 and 594/(Coch) of 1977-78 in the case of Ruby Rubber Works. This was done by a short judgment and the order of the first appellate authority deleting this amount of Rs. 9,502 was confirmed. It appears that the Division Bench of this court in CIT v. Malayalam Plantations Ltd. [1987] 168 ITR 63 considered the question on the basis of reference to various decided cases. The Division Bench also considered the provisions of section 10 of the Income-tax Act, 1961, relating to incomes not included in the total income. The court specifically considered the provisions of section 10(30) of the Act relating to the amount of any subsidy received by the assessee carrying on the business of growing and manufacturing of tea in this country by way of a subsidy received from or through the Tea Board under any such scheme for replantation or replacement of tea bushe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubber Production in India it is observed that the Board implements many schemes designed to achieve development of the rubber plantation industry on efficient and economic lines. Certain requirements are behind the formulation of the schemes. It is also observed in the context the decisions of the Supreme Court in regard to the nature of subsidy are also taken into consideration. In this connection, the judgment enters to further details making references to the observations of the Supreme Court in regard to the purposes of floating the grant of subsidies and the spirit behind the said grant, that they are to be issued not as a part of the profits or gains or as sums which make up the profits or gains in the trade but a receipt is given for the express purpose having no connection whatsoever with the normal trading activity of the concerned industry. What is received by way of a grant of subsidy, the discussion proceeds further, the above assessee from the Rubber Board would only have to be considered by way of reimbursement of expenditure in replanting rubber trees. In the context, the Full Bench has also taken into consideration the point of distinction as regards earning of an i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in regard thereto is also statutorily available by the clauses of section 10 of the Act. Learned counsel took us through the decision, to concentrate on the observations of the apex court that even if the receipt of a particular amount may not fall within all the clauses and sub-clauses of section 2(24), it may yet constitute income. The observations in this context are more than emphasised by learned senior standing counsel for taxes that to say otherwise would mean reading the several clauses in section 2(24) as exhaustive of the meaning of "income" when the statute expressly clarifies that the definition is required to be understood as "inclusive". The observations of the apex court (see [1993] 201 ITR 866) that it would be a wrong approach to try to place a given receipt under one or the other sub-clauses in section 2(24) and consequently if it does not constitute income would be a wrong approach. These observations leading to the conclusion that the idea behind providing an inclusive definition in section 2(24) is not to limit its meaning but to widen the net, learned counsel submits is a background for an approach to appreciate the statutory provision of section 10 seeking ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... difficult situation. The Full Bench has considered the nature and purpose of the subsidy. The Full Bench has also taken into consideration that the receipt of the amount could not be understood in the sense of the term "income". In view of the clear-cut position that the emergence of the scheme by the Board has no relation whatsoever with anything that would go to create a situation that it could be understood as income in any sense of the term. The scheme is floated by the Rubber Board and was designed to achieve development of the rubber plantation industry on efficient and economic lines. Even if the various facets of section 2(24) are taken into consideration along with the situation that the definition is inclusive, it is not possible to understand the amount which is as a result of the floating of the scheme by the Rubber Board which could be contemplated to fall in any of the items or considered even otherwise as exhibiting analogous situation to lead to the conclusion that it could be understood as income. Illustratively, the statutory provisions of section 2(24) of the Act would show that even the inclusive character of the term "income" would have to be understood in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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