Itta/217/2003 Of The Commissioner Of Income Tax v. The Vishnu Cements Ltd

THE HON'BLE SRI JUSTICE L. NARASIMHA REDDYANDTHE HON'BLE SRI JUSTICE T. SUNIL CHOWDARY I.T.T.A.No.217 of 2003 JUDGMENT:(Per Justice L.Narasimha Reddy) In this appeal, the following substantial questions of law are raised. “Whether the Appellate Tribunal is justified in holding thatthe power subsidy received by the assessee from APSEB partakesthe character of capital receipt and not revenue receipt in the hands ofthe assessee? Whether the Appellate Tribunal is justified in distinguishingdecision of the Supreme Court in the case of Sahney Steel & PressWorks reported in 228 ITR 253” Heard the learned counsel for the appellant and the learnedcounsel for the respondent. The questions referred to above were dealt with by the Hon’ble Supreme Court in Sahney Steel and Press Works v C.I.T.[[1]], wherein itwas held that the amount received towards power subsidy must betreated as revenue receipt and not as capital receipt. The same wasfollowed by this Court in several cases. Hence, this appeal is allowed and the order under appeal, dated15.04.2002, passed by the Hyderabad Bench of Income Tax AppellateTribunal in I.T.A. No.1330/Hyd/1997, is set aside to the extent indicatedabove. There shall be no order as to costs. As a sequel, miscellaneousapplications if any pending in this appeal shall stand closed. ___________________________ L. NARASIMHA REDDY, J Date: 12.08.2014.Kvsn/Ys _________________________ T. SUNIL CHOWDARY, J [1](1997) 228 ITR 253