COMMISSIONER OF INCOME TAX Vs. NAVODAYA

JUDGEMENT

(1.) THESE two references brought before us by the Revenue and the assessee, respectively, relate to the assessment years 1985-86 and 1984-85 in the same order. The questions expecting our answer in these two references, as they are differently worded, are being reproduced hereinbelow separately in the same order :

(2.) WHETHER, on the facts and in the circumstances of the case, and also in the light of the decision of the Kerala High Court in Kesaria Tea Co. Ltd. v. CIT [1989] 180 ITR 134, is not the subsidy received by the assessee income in the hands of the assessee ?

(3.) SIMILARLY Section 37(2A) of the Act also specifies a further added facet of entertainment expenditure. We also find the statutory provision of Section 37(2B) of the Act relating to the expenditure on advertisement as specified therein. SIMILARLY, we also find Section 37(3) of the Act relating to expenditure on advertisement or on maintenance of any residential accommodation specified specifically therein.