1998 (7) TMI 60

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....eard counsel for the parties. The Income-tax Appellate Tribunal, at the instance of the Revenue, referred the following question for the opinion of this court relating to the assessment year 1982-83, under section 256(2) of the Income-tax Act, 1961 : "Whether, on the facts and in the circumstances of the case, the subsidy given by the Government of Kerala, is a capital receipt not liable to tax....

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....bsidy was meant for promoting low cost high quality pig feeds for distribution to farmers. No clear finding has been recorded by the Appellate Tribunal whether the subsidy was granted to the assessee for establishing a new unit for manufacturing or for starting some other activity or for successful running of an already established unit. In Sahney Steel and Press Works Ltd. v. CIT [1997] 228 ITR 2....