Gammon India Ltd., Bombay v. The Commissioner Of Income Tax

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICGTION INCOME TAX REFERENCE NO. 312 of 1988 Gammon India Ltd., Bombay... Applicant. vs. The Commissioner of Income Tax ..... Respondent Mr. S. S. Shetty with MR. P. C. Tripathi forApplicant. Mr. Ashok Kotangale, Sr. Counsel i/b. K.C. Sidhwafor Respondent. CORAM: V. C. DAGA AND A. S. AGUIAR JJ. Date:14[th ]July, 2005. P. C.: 1. By this reference under section 256 (1) of the Income Tax Act , 1961, the Income Tax Appellate Tribunal has referred the followingquestions of law for the opinion of this court: “Whether on the facts and circumstances of the case,the Tribunal was justified in law in holding that thesubsidy received by the applicant on the manufacture offertilizers was 'income' in its hands and as suchchargeable to tax?” 2 2. Heard learned counsel for the applicant. He fairly states that thequestion quoted herein above has already been answered by theSupreme Court in the matter of Sahney Steel & Press Works Ltd. Vs.Commissioner of Income Tax, [1997] 228 ITR 253 – page 262. Inthat view of the matter the subsidy received by the applicant andused in the manufacture of fertilizer is held as trade receipt. In thisview of the finding the question referred in this reference is answeredin the affirmative, against the assessee and in favour of the revenue.Reference stands disposed of with no order as to costs. (V. C. DAGA J. ) (A. S. AGUIAR J.)