Sales tax subsidy as capital receipt held settled, so no referable question of law survived.

Sales tax subsidy was treated as a capital receipt because the issue had already been concluded by binding precedent, and the Tribunal had followed that settled position. The High Court held that no substantial question of law survived for consideration and that the proposed questions did not justify a reference under the Income-tax Act. As no referable question of law arose from the Tribunal's order, the application for reference was rejected.

---

---

Issues: Whether any referable question of law arose from the Tribunal's order in relation to the treatment of sales tax subsidy as a capital receipt, warranting a direction for reference under section 256(2) of the Income-tax Act, 1961.

Analysis: The Tribunal had dismissed the Department's appeal by following the binding decision on the character of sales tax subsidy, and the High Court noted that the point stood concluded by that precedent. In view of the settled position, the Court found no substantial question requiring reference and held that the proposed questions did not survive for consideration.

Conclusion: No referable question of law arose, and the application for reference was rejected.

---