2011 (8) TMI 779

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Advocate for the petitioner Judgement   ORDER (ORAL)   1. Heard learned counsel for the parties.   2. This reference has been filed by the Revenue under Section 256 (2) of the Income Tax Act, 1961 (for short "the IT Act, 1961") to call for the question proposed and answer the same on merits.  3. The question proposed is :   "Whether on the facts and in th....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Commission of Income Tax v. P.J. Chemicals Ltd.2, wherein the Supreme Court held that the subsidies given by the Government as incentives to the industrial undertakings in backward areas are capital in nature and cannot be taxed under the head revenue expenditure, confirmed the order of the learned CIT (A).   5. The ITAT held that no referable question as proposed by the revenue arises si....