1989 (5) TMI 35

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..... red the following question of law for the decision of this court : "Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the cash assistance of Rs. 9,79,341 given to the assessee for promotion and encouragement of exports is taxable business income ?" The applicant is an assessee to income-tax. The respondent is the Revenue. We are concerned with t .....

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..... referred to this court for decision, by the Income-tax Appellate Tribunal under section 256(1) of the Incometax Act. We heard counsel. It is agreed that the assessee was carrying on export business in tea. It is further common ground that the cash assistance was given at 10% of the f.o,b. value of instant tea, packet tea and tea bags. The entitlement to cash assistance at 10% sprang from the bus .....

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..... he decision of the Appellate Tribunal, holding that a sum of Rs. 9,79,341 received by the assessee by way of subsidy or cash assistance can be included in the taxable income, is justified. We answer the question referred to us in the affirmative, against the assessee and in favour of the Revenue. We are fortified in taking this view in the light of the following decisions in Pontypridd and Rhond .....

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