1998 (8) TMI 13

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....J.---The assessee is an owner of horses. He received subsidy from the Madras Race Club under a scheme framed by the club under which the pre-condition for claiming a subsidy was that the horses in respect of which subsidy was claimed should have participated in a minimum of four races during the racing season. The subsidy was of an amount equivalent to the basic training fee to the owner, as also ....

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....ied on the decision of the Andhra Pradesh High Court in the case of CIT v. Sahney Steel and. Press Works Ltd. [1985] 152 ITR 39. The decision in the case of Sahney Steel and Press Works Ltd. [1985] 152 ITR 39 (AP) was affirmed by the Supreme Court in the case of Sahney Steel and Press Works Ltd. v. CIT [1997] 228 ITR 253. The court held that if monies are given to the assessee for assisting him in....

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....n of "income" in section 2(24), sub-clause (ix), of the Act. The subsidy received by the assessee from the race club was a subsidy, which enabled him to continue his operations as a horse owner whether as business or as hobby, and it was conditional upon the participation of the horses in the races run by the club. In the circumstances, the subsidy given must be regarded as assistance given by the....

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....rtise of the rider and other factors. Every horse owner who participates in the race, therefore, participates with intention of winning the race, though that intention may not be realised in all cases. The assessee's counsel also contended that as the winnings from horse race has to be taxed as income from other sources, that should make the difference in the way in which subsidies received fro....