1998 (3) TMI 51

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..... BALASUBRAMANIAN J.---The only question of law that has been referred to us relating to the assessment of income of the assessee for the assessment year 1981-82 for the opinion of this court is as to whether, on the facts and circumstances of the case, the Tribunal was right in holding that the subsidy received by the assessee should be treated as taxable revenue receipt. The Income-tax Officer, ....

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.... not disputed that such expenditure was also allowed in computing the business income of the assessee for the assessment year in question. The finding of the Tribunal, in our opinion, is clear that the assessee received the amount by way of reimbursement of the expenditure incurred by the assessee and the expenditure was also allowed as a deduction as revenue expenditure in computing the business ....

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....hould be assessable as revenue receipt. The apex court in Sahney Steel and Press Works Ltd. v. CIT [1997] 228 ITR 253, has taken a similar view and held that the subsidy granted to the assessee for the purpose of carrying on-the business should be treated as revenue receipt. Following the decision of the apex court in Sahney Steel and Press Works Ltd. v. CIT [1997] 228 ITR 253, and the decision....