2003 (5) TMI 26

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....ourt was delivered by S.K. SETH J.-This reference under section 256(1) of the Income-tax Act, 1961, at the instance of the Revenue has been made by the Income-tax Appellate Tribunal, Indore Bench, for the opinion of this court on the following question of law: "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the power subsidy received by....

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....r appeal being filed by the assessee-company before the Tribunal, it deleted the addition, following its earlier decision given in the case of Kashyap Sweetners (P) Ltd. v. Deputy CIT-I.T.A. No. 704 (Ind.) of 1994 without any detailed discussion. On an application being moved by the Revenue, the Tribunal has referred the question as mentioned above for the opinion of this court. We have heard l....

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....tage of the expenditure on power. The receipt is, therefore, revenue in nature in the hands of the assessee. Sahney Steel and Press Works Ltd. v. CIT [1997] 228 ITR 253 (SC) is a complete answer to the referred question. This decision of the Supreme Court has been followed in subsequent decisions in CIT v. Rajaram Maize Products [2001] 251 ITR 427 (SC) and CIT v. Eastern Electro Chemicals Industri....