2016 (8) TMI 112

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.... SOPARKAR, ADVOCATE ORAL JUDGMENT (PER : HONOURABLE MR.JUSTICE KS JHAVERI) 1. Being aggrieved and dissatisfied with the impugned order passed by the Income Tax Appellate Tribunal, Mumbai Bench, "E" (hereinafter referred to as the Tribunal) dated 31.01.2007 in ITA No. 3918/Mum/2003 for the Assessment Year 1998-99, the revenue has preferred the present Tax Appeal. 2. The following substa....

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....exus with the profit derived from business of an industry or an enterprise referred to in subsection (4) of 801A. The assessee being aggrieved by the order of Assessing Officer filed an appeal before the CIT(A) and order of Assessing Officer was confirmed by the CIT (A) by holding that amount of subsidy has no relation with the profits of any industrial undertaking and the appeal filed by the asse....

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....given by the Assessing Officer as well as the CIT ( Appeals). 5. It is further contended by learned advocate appearing for the revenue that any amount received by way of subsidy was an amount whose source was the Government and not the business of the assessee. According to him, subsidy is paid to the seller and hence the same could not be considered for the benefits given to the manufacturers ....

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....mmediate nexus with the activities of the industrial undertaking. The Government had decided to compensate the farmers and bearing the burden of the farmers partially to help them. The Government fixes the market price of fertilizers to the farmer and for the same a part of the sale consideration is paid by it by way of subsidy by the Government. Therefore, it cannot be said that the subsidy amoun....