1989 (5) TMI 35

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....he instance of the applicant/assessee, the Incometax Appellate Tribunal has referred the following question of law for the decision of this court : "Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the cash assistance of Rs. 9,79,341 given to the assessee for promotion and encouragement of exports is taxable business income ?" The applicant i....

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.... the instance of the assessee, the question of law formulated hereinabove has been referred to this court for decision, by the Income-tax Appellate Tribunal under section 256(1) of the Incometax Act. We heard counsel. It is agreed that the assessee was carrying on export business in tea. It is further common ground that the cash assistance was given at 10% of the f.o,b. value of instant tea, pa....

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....specific or specified purpose. In this view of the matter, we are of the view that the decision of the Appellate Tribunal, holding that a sum of Rs. 9,79,341 received by the assessee by way of subsidy or cash assistance can be included in the taxable income, is justified. We answer the question referred to us in the affirmative, against the assessee and in favour of the Revenue. We are fortifie....