2005 (1) TMI 10

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....e-tax reference made at the instance of the Revenue under section 256(1) of the Income-tax Act, 1961, by the Tribunal (ITAT) in R.A. No. 139/Ind./97, dated February 9, 1998, which arises out of an order dated October 17, 1997, passed by the Tribunal in I. T. A. No. 475/Ind./93 to answer the following question of law said to arise out of the aforementioned order : "Whether, on the facts and in t....

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.... heard the arguments advanced by the par ties. The parties have admitted that the issue is covered by the decision of the Tribunal in favour of the assessee in the case of Kashyap Sweeteners Pvt. Ltd. v. Deputy CIT (Asstt.) in I. T. A. No. 704/Ind./94 dated January 25, 1995, for the assessment year 1991-92. In this view of the matter and following the decision (supra), we decide this ground in fav....

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..... Before one is able to come to its conclusion, it is necessary to find out as to what is the object of the scheme, its nature, manner, mode of payments its reimbursement, benefit conferred upon the assessee. It is these factors which determine the character of the amount received which in turn determines its nature from the income-tax point of view. If the amount is paid by way of subsidy for set....