TaxTMI 
TaxTMI 
1979 (9) TMI 62
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....ident Funds Act, 1952 ? (ii) Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the sum of Rs. 2,33,662, received by the assessee from the Textile Commissioner was liable to be assessed as assessee's income ? (iii) Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the penalty of Rs. 7,667 levied on the assessee under the Central Sales Tax Act could not be allowed as a deduction while computing the income of the assessee ? (iv) Whether the Tribunal was justified in holding that appeal against the levy of interest under section 215 of the Income-tax Act was not competent? " We are absolved from stating material facts in so far as questions Nos....
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....as received as subsidy from the export promotion fund. The amount was credited in the accounts of the assessee under the head of miscellaneous receipts and it was claimed that it could not be taxed as its income. The ITO did not accept this contention and treated it to be the income of the assessee. The AAC held likewise. The Tribunal, following its decision for the assessment year 1961-62, upheld the addition. The question as to whether the export subsidy received by an assessee is to be treated as income has received consideration of this court in Agra Chain Mfg. Co. v. CIT [1978] 114 ITR 840, which decision was, however, given in respect of a case relating to the assessment years 1966-67 and onwards and it was held that export subsidy re....
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....se of carrying on its business. This case was decided not by resort to s. 28(iv) but on the footing that it was a revenue receipt as it had been earned by the assessee in the course of its business. In Dhrangadhra's case [1977] 106 ITR 473 (Bom), there was a glut of soda ash in the market because of large imports. In order to offset the difficulties of manufacturers of the soda ash in the country a subsidy of Re. 1 per cwt. of soda ash produced and sold was granted by the Govt. of India. An amount of Rs. 2,03,903 was paid to the assessee after a suit had been filed to recover the amount on the basis of the Govt. resolution. The question arose whether the amount was deposited as a revenue receipt. It was held that it was a revenue receipt as....