Itxa/273/2011 Of The Commissioner Of Income Tax -Iv v. The Saswad Mali Sugar Factory Ltd

itxa273-11 IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.273 OF 2011 The Commissioner of Income Tax-IV ..Appellant. V/s. The Saswad Sugar Factory Ltd...Respondent. Mr. Vimal Gupta, senior Advocate with Ms. Padma Divakar for the appellant. None for the respondent. CORAM : J.P. DEVADHAR AND M.S. SANKLECHA, JJ. DATED : 19TH NOVEMBER, 2012 P.C. :- 1.Whether the ITAT was justified in holding that the incentives received by the assessee from the Central Government amounting to Rs.2.75 crores was a capital receipt and not a revenue receipt as held by the assessing officer, is the basic question raised in this appeal. 2. The ITAT in para 17 of its order has recorded a finding that the incentives received by the assessee is under the same scheme which was considered by the Apex Court in the case of CIT V/s. Ponni Sugar and Chemicals Ltd. reported in [2008] 306 ITR 392 (SC) wherein the Apex Court has held that the incentives received by the assessee therein would be capital receipt. It is the contention of the revenue that since the assessee is a restructured company, it cannot be said that the incentives received were capital receipt. In the absence of any material on record to show that the incentive received by a restructured company would be an incentive liable to be treated as revenue receipt, in our opinion, no fault can be found with the decision of the ITAT in upholding the claim of the assessee by following the decision of the Apex Court in the case of Ponni Sugar and Chemicals Ltd. (supra). Accordingly, we see no reason to entertain the appeal and the same is hereby dismissed with no order as to costs. (M.S. SANKLECHA, J.) (J.P. DEVADHAR, J.)