COMMISSIONER OF INCOME-TAX Vs. DINESH KUMAR

JUDGEMENT

(1.) This appeal was admitted on the following questions of law:

(2.) Whether on the facts and in the circumstances of the case, the ITAT was right in law holding that 'freight subsidy' was rightly taken into consideration by the assessee in working out the profits and gains of the business of the undertaking relying on the decision of Calcutta High Court in the case of Merinoplly and Chemicals Ltd., 209 ITR 508, where the point in issue was whether a receipt on account of transport/freight subsidy was of a revenue nature and was inseparably connected with the business and not whether it was income derived from the business of the industrial undertaking and eligible for deduction under Section 80HH/80IA/80IB of the Income tax Act, 1961.

(3.) Whether on the facts and in the circumstances of the case, the ITAT was right in not appreciating the ratio of judgements of the Hon'ble Madras High Court in its decision in the cases of CIT v. Jameel Leathers and Uppers,246 ITR 97 and CIT v. Vishwanathan and Co.,261 ITR 737 which are applicable in this case, wherein it has been clearly held that the amounts received on account of cash assistance, duty drawback, import entitlements and air subsidy etc., are not the amounts which form part of the profits and gains 'derived' from the industrial undertaking and the Hon'ble Madras High Court while deciding the cases (supra) has followed the law laid down by the Hon'ble Supreme Court in their judgement in the case of Cambay Electric Supply Industrial Co. Ltd. v. CIT (supra).