COMMISSIONER OF INCOME-TAX Vs. PRAMOD KUMAR SHUKLA

JUDGEMENT

(1.) IN the present appeal filed under Section 260A of the Income -tax Act, 1961, hereinafter referred to as 'the Act'), the Revenue has raised the following questions said to be substantial questions of law, which arise out of the order of the Income -tax Appellate Tribunal, Allahabad, dated September 10, 2002. 1. Whether, on the facts and in the circumstances of the case, the Tribunal is justified in holding that there was difference of opinion between the assessee and the Department that grant -in -aid is a capital in nature and not taxable ?

(2.) WHETHER , on the facts and in the circumstances of the case, the Tribunal is justified in law in holding that the assessee has not concealed the particulars of its income or has furnished inaccurate particulars of such income ?

(3.) WE find that this Court in the case of Kalpana Palace v. CIT : [2005]275ITR365(All) , has held that the grant -in -aid received from the State Government by the cinema owners is capital receipt. That being the position, the assessee had rightly not included in its income the grant -in -aid. Consequently, no penalty is exigible. The order of the Tribunal does not give rise to any substantial question of law. The appeal lacks merit and is dismissed in limine.