2015 (3) TMI 1305

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...., Advocate. O R D E R The Revenue is aggrieved by an order of the Income Tax Appellate Tribunal (ITAT) dated 12.08.2014 in ITA No.952/Del/2011. The questions involved is whether the sum of Rs. 2,00,64,000/- received by the assessee as Sales Tax Subsidy pursuant to Haryana Government's Scheme, was to be treated as revenue receipt or one falling in the capital scheme. The relevant facts are that....

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....urt in CIT v. Ponni Sugars and Chemicals Ltd. - reported as 306 ITR 392. The Revenue is, therefore, in appeal. At the outset, it is urged that the State had by order dated 07.06.2007 withdrawn the sales tax exemption, i.e. subsidy scheme and this was an important factor which should be taken note of. In response, the Revenue places on record a copy of the decision of the Punjab and Haryana High C....

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....different State governments to reimburse or finance particular projects was discussed. This Court has considered the submissions and is of the opinion that the ITAT's impugned order has noted the relevant law. Crucially, Ponni Sugars (supra) is a later decision of the Supreme Court which had gone to deal with various authorities, including Sahney (supra). The Supreme Court has emphasized in each....