COMMISSIONER OF INCOME TAX Vs. DUSAD INDUSTRIES

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal, Indore Bench, Indore, at the instance of the Commissioner of Income-tax, Bhopal, has made this reference under Section 256(1) of the Income-tax Act, 1961, for the opinion of this court on the following question of law :

(2.) THE facts giving rise to this reference, as per the statement of case received may be stated, in brief, thus : During the two years in question, the respondent-assessee received sales tax subsidies of Rs. 24,481 and Rs. 66,990, respectively. THE Income-tax Officer was of the opinion that these receipts were revenue in nature and, as such, liable to be taxed as the income of the assessee. Consequently, he added these amounts in the assessee's hands. This was confirmed by the Appellate Assistant Commissioner on appeal. On a further appeal being filed by the assessee before the Tribunal, it deleted the additions with the following observations :

(3.) LEARNED counsel for the applicant has submitted I. A. No. 3957 of 1985 under Section 58 of the Income-tax Act for supplementary statement of facts on the ground that the learned Income-tax Appellate Tribunal has not recorded essential facts on the point of object and purpose of giving subsidy to the respondent nor is any such finding of fact given. However, after hearing learned counsel, we see no valid ground to allow this application. The same is, therefore, rejected.