TaxTMI 
TaxTMI 
2013 (3) TMI 99
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....rrect in holding that the amount of subsidy received by the assessee represented compensation for loss of profit and not as a financial capital assistance to make good the erosion of capital, and, therefore, it was not a capital but a revenue receipt?" The reference relates to the Assessment Year 1979-80 and 1980-81. Briefly stated the facts giving rise to the present reference are as follows: The applicant is a State Government Undertaking. It has been established for promoting the cottage industries carrying on the business of Handloom/Powerloom on small scale. It also provides financial, technical, marketing development and other assistance and guidance to accelerate the development of Handloom and Powerloom industry in the Stat....
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....manent shops were also to be utilised for distribution of Janta Cloth in rural areas. The implementing agency was entitled to receive subsidy at the rate fixed by the office of the Development Commissioner (Handlooms), Government of India from time to time on a per square meter basis. The subsidy was payable on the basis of actual deliveries of Janta Cloth. The term 'actual deliveries made' mean the quantity of Janta Cloth actually delivered from the Central Godowns, Regional Depots of the State implementing agencies for the retail sale to the selling agencies. The Nodal Agency and implementing agencies were also required to certify that the subsidy claimed did not include any portion relating to the goods returned, if any. 20% of the su....
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....d 31.03.1992 had been pleased to dismiss both the appeals. We have heard learned counsel for the parties. The learned counsel for the assessee submitted that the authorities below including the Tribunal had not properly appreciated the aim and object of the "Janta Cloth Scheme" introduced by the Central Government. Under the said scheme, subsidy had been given with a view of the primary object of encouragement and development of Handloom Industries. It has been framed for providing more and more employment to the unemployed and underemployed and to provide cheaper cloth to the weaker section of the population of our country. Subsidy is linked with the production of Janta Cloth and, therefore, in order to provide working capital, 75% a....
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.... twin objective of providing sustained employment to the unemployed and underemployed handloom weavers and at the same time to provide cheaper cloth to the weaker section of the population of our country. The implementing agencies were notified as Handloom Weavers Cooperative Society and State Handloom Development Corporation, who were already working. The Janta Cloth was to be distributed through the outlets owned by the implementing agencies and their mobile units, consumer cooperative societies (including super bazar), other forms of cooperative societies, fair price shops, civil supplies outlets, etc. In the rural areas, approved private retailers operating regularly in village hats/bazars or other approved retailers having permanent sh....