COMMISSIONER OF INCOME TAX Vs. WELSPUN STEEL LTD

JUDGEMENT

(1.) Since these appeals involve similar questions and arise out of a common judgment of the Income Tax Appellate Tribunal (in short "the Tribunal") they have been heard together and would be disposed of finally by the common judgment. Facts may be noted from Income Tax.

(2.) The Revenue is in Appeal against the Judgment of the Tribunal, raising following questions for our consideration:

(3.) RespondentAssessee is a Registered Company. The issues arise in return for the Assessment Year 200910. The first question raised by the Revenue arises out of the dispute between the Assessee and the Revenue with respect to the treatment that, the subsidy amounts received by the Respondent should be given. For setting up a new industry in Kutch District of the State of Gujarat, the Assessee was granted certain subsidies under the State Government as well as Central Government Schemes. As is well known, the State of Gujarat was hit by devastating earthquake which took place on 26th January, 2001, the Kutch District being the worst hit. Post such calamity, to put development of Kutch District back on track, the State Government had introduced a Sales Tax exemption/ deferment Scheme under which, at the option of the assesssee, for specified period, on new investment, there would either be exemption or deferment of sales tax. The preamble of the Schemes as noted by the Tribunal in the impugned judgment, read as under: