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TMI Blog2007 (8) TMI 302X X X X Extracts X X X X X X X X Extracts X X X X ..... Subbaraya Aiyar for the appellant. JUDGMENT The judgment of the court was delivered by K.RAVIRAJA PANDIAN, J- This appeal is filed by the assessee against the order of the Income Tax Appellate Tribunal Madras 'C' Bench made in I.T.A.No.128/Mds/2005 dated 9.2.2007. The relevant assessment year is 2001-02. The substantial questions of law formulated for entertainment of the appeal are as follows: "Whether on the facts and circumstances of the case, the Tribunal was right in law in holding that the financial assistance received under the West Bengal Industrial Promotion (Assistance to Industrial Units) Government of West Bengal Scheme 1994 is a revenue receipt chargeable to tax?" 2. The facts of the case are as follows: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f subsidy from public funds were made to the assessee to assist him in carrying on his trade or business, they were to be treated as trade receipts. The Supreme Court further held that the character of the subsidy in the hands of the recipient-whether revenue or capital-would have to be determined, having regard to the purpose for which the subsidy was given. The source of the fund was quite immaterial. It was further held that if the purpose was to help the assessee to set up its business or complete a project the monies must be treated as having been received for capital purposes. But if monies were given to the assessee for assisting him in carrying out the business operations and the money was given only after and conditional upon comme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tanding anything contained elsewhere in this Resolution, such dealer shall not be entitled to payment of any sum as industrial promotion assistance under this scheme in respect of such unit for such goods for the period from the first day of the quarter, during which there was discontinuance of manufacturing activity, up to the date immediately preceding the date on which such dealer again commences manufacturing of such goods in such units. The second proviso provided that the payment of assistance to a registered dealer under this scheme in respect of any unit for any period prior to the period referred to in the first proviso, notwithstanding that he is entitled to such assistance, shall remain suspended during the period starting from t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s entitled to the industrial assistance under paragraph (3), the Government would sanction the money towards the payment of such industrial promotion assistance. 11. In Schedules A and B, the goods to be manufactured by the SSI unit have been catalogued. The Form in which the claim has to be made under the Scheme is stated in Form No. I with reference to Paragraph (4). Under the Form, the following particulars are required to be stated: "1. Name of the Unit and Address. 2. Name of the goods manufactured in West Bengal Rs.........(in figure) as specified in Schedule 'A' or Schedule 'B' in his Rupees ....... (in words) S.S.I. Unit.) 3. Sales tax paid on goods at serial No.2 under the West Bengal Sales Tax Act, 1994/Central Sales T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d with reference to investment on the fixed asset or establishment of new unit. The assistance is not conditional upon establishing of an industry in backward area or any other area within West Bengal or conditional upon commencement of project. The quantum of assistance is also not based on investment made on the capital asset. Hence, the one and only conclusion that could be arrived at from the Scheme under consideration is that the assistance given to the appellant is regarded as revenue receipt. 15. Learned counsel appearing for the appellant vehemently contended that the preamble of the Scheme made it clear that the industrial unit manufacturing certain goods in West Bengal needed the financial assistance for extension of their ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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