1998 (7) TMI 60

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....e-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?" The assessee is a Kerala Government u....

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....uality 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 253, the Supreme Court precisely laid down a t....