2009 (5) TMI 72

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.... 1. In the present appeal filed under section 260A of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), the Revenue submits that the order of the Income-tax Appellate Tribunal dated June 9, 2005, involves the following substantial questions of law: "Whether, on the facts and in the circumstances of the case, the Tribunal is justified in law in holding that the incentive receive....

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....mission and, accordingly treated it to be revenue receipt. However, in the appeal preferred by the respondent-assessee before the Commissioner of Income-tax (Appeals), Lucknow, the plea had been accepted. The Commissioner of Income-tax (Appeals) has found as follows: "In the instant case, the very right to receive the excess price and the excess excise duty was based on the obligation to recoup....

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....el has submitted that under the incentive scheme the rebate of realisation on account of excess free sale of sugar and the differential excise duty received by the respondent-assessee was in the normal course of business and, therefore, the same was rightly treated to be a revenue receipt. He further submitted that it cannot be treated as a capital receipt as it was not towards the repayment of lo....