2000 (9) TMI 15

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....Income-tax Act, 1961 (for short "the Act"), by the Income-tax Appellate Tribunal, Delhi Bench "D" (in short "the Tribunal") for the opinion of this court: "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the subsidy granted by the Central Government to the assessee amounting to Rs.25,000 in the assessment year 1972-73 is receipt of a casual and non-recurring nature as contemplated in section 10(3) of the Income-tax Act and not covered by clause (ii) of the proviso to section 10(3) of the Act and hence the said amount cannot be brought to tax in the hands of the assessee?" The Tribunal held that the receipts are of a casual and non-recurring nature as contemplated under secti....

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....es and the rent." According to learned counsel for the assessee, the net result is that there is no effect on the income of the assessee and the tax liability relatable thereto. Though the question referred is a question of law, yet considering the fact that the income of the assessee is not affected in view of the conclusion of disallowance of expenses relating to managerial expenses and rent, the net result is that the assessee's receipts on account of subsidy have been held to be non-taxable, but the claim of expenses to the same extent have been held to be not allowable. That being the position, we feel any answer to the question referred by the Tribunal would be of academic interest. For all these years with which we are concerne....