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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 ..... mstances 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: 3. The appellant was engaged in the business of manufacture and trading of drugs and pharmaceuticals products. For the assessment year 2001-2002, the appellant filed its return of income on 31.10.2001 admitting an income of Rs.3,81,69,370/- The return was processed under section 143(1) on 29.1.2003 and a refund of Rs.9,18,004/- was issued. Scrutiny assessment under Section 143(3) was completed on 23.2.2004 by determi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t 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 commencement of production, such subsidies must be treated as assistance for the purpose of the trade. 6. In order to find out whether the assistance granted to the appellant would be regarded as capital receipt or revenue receipt, let us consider the scheme under which the assistance was granted to the appellant. The assistance was granted under the scheme entitled as "West Bengal Industrial Promotion (Assistance to Industrial Un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 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 the date of discontinuance of production in the said unit till the date of resumption of production in such unit. The third proviso provided that the first proviso shall not apply to the cases where payments, if any, under the scheme have been made to a registered dealer before the publication of the scheme in the official Gazette. 8. Paragraph 3A provides for maintenance of accounts for entitlement to industrial promotion assi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... : "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 Tax Act, 1956 for sales effected during the quarter commencing on ........(date) and ending on .............. (date). 4. Name and address of the dealer. 5. Name of the Bank with branch name and Bank Account No. in which the Cheque will be deposited. 6. Registration Certificate No. of the dealer under the West Bengal Sales Tax Act, 1994/Central Sales Tax Act, 1956. 7. Permanent S.S.I. Registration Certificate number and date, if any, of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 capacity or modernising and improving the market capabilities and the scheme has been formulated to assist such unit for the extension and modernisation. We are not able to accept the contention of the learned counsel for the appellant. Though the preamble to the Scheme states the assistance was granted for extension of the capacity, modernisation and improvement of the market ability, that by ipso facto cannot be taken in isolation de hors the provisions of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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