2000 (7) TMI 45

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....--This appeal under section 260A of the Income-tax Act, 1961 (for short "the Act"), is in respect of the order dated June 7 1999, passed by the Income-tax Appellate Tribunal, Delhi Bench-D (for short "the Tribunal"), in ITA No. 5264/Delhi of 1991 for the assessment year 1989-90. The dispute relates to the question whether subsidies shown as receivable for the months of February and March, 1989,....

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.... sum of Rs. 6,39,946 as subsidy on account of revised rates in respect of the assessment year in question and, therefore, an addition of Rs. 10,51,021 was made to the total income of the assessee. Being aggrieved by the aforesaid order, the assessee filed an appeal before the Commissioner of Income-tax (Appeals) (in short "the CIT(A)"), who reduced the addition in respect of Rs. 4,11,075 to Rs. 2,....

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....osphate and received subsidy from the Government of India. The prices of fertilizers are fixed from time to time. In order to claim subsidy, the assessee raised bills on the basis of rates notified by the Fertilizer Industries Co-ordination Committee (in short "the FICC"), and got the subsidy. The bills were raised usually in the first week of the next month on the basis of actual quantity produce....

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....e and understatement of subsidy receivable. We find that both the Commissioner of Income-tax (Appeals) and the Tribunal noticed that the notification dated March 28, 1989, was received by the assessee in the first week of April, 1989, and, therefore, arrears were subsequently received. The amounts received on the basis of the revised rates have to be assessed only in the subsequent year, i.e., ....