M/S CHATTA SUGAR CO. LTD,MATHURA vs. A.C.I..T CIRCLE-3, MATHURA
What did the Tribunal hold?
The Tribunal held that the grant was not a revenue receipt and not taxable. It further held that the amount was not taxable under Section 41(1) as there was no remission or cessation of liability, as the entire amount was paid to cane growers as per the grant's mandate.
What were the facts?
The assessee received a grant of Rs. 17,44,85,000 from the Uttar Pradesh Government for cane price payments to farmers. The Assessing Officer (AO) treated this grant as revenue receipt and taxable income, and also as remission of liability under Section 41(1). The assessee contended it was a capital receipt.
What were the issues?
Whether a government grant received for cane price payments to farmers is a revenue receipt or a capital receipt, and whether it constitutes remission or cessation of trading liability under Section 41(1).
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Cases cited in this judgment(12)Show listHide list
Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.
- CIT v. Ponni Sugars & Chemicals Ltd.577 citing306 ITR 392 · 2008 · SC · Read judgment
- Sahney Steel and Press Works Ltd. v. CIT429 citing228 ITR 253 · 1997 · SC
- 306 ITR 392/174 Taxman 87 and Sahney Steel and Press Works Ltd. v. CIT102 citing94 Taxmann 368 · 1997 · SC
- CIT v. Ponni Sugars & Chemicals Ltd.48 citing260 ITR 605 · 2003 · HC
- Merinoply & Chemicals Ltd. v. CIT43 citing209 ITR 508 · 1994 · HC
- Logitronics P. Ltd. v. CIT38 citing333 ITR 386 · 2011 · HC · Read judgment
- Rollatainers Ltd. v. CIT26 citing339 ITR 54 · 2011 · HC · Read judgment
- Genus Overseas Limited, Jaipur, Ratna Sugar Mills Co Ltd. v. CIT8 citing33 ITR 644 · 1958 · HC
- Raghuvanshi Mills Ltd. v. CIT6 citing22 ITR 484 · 1952 · SC · Read judgment
- Ludhiana Central Cooperative Consumers' Stores Ltd. v. CIT5 citing122 ITR 942 · 1980 · HC
- H.P. Nursing Registration Council v. PCIT3 citing414 ITR 443 · 2019 · HC
- Siemens Public Communication Network (P.) Ltd. v. CIT3 citing77 Taxmann.com 22 · 2017 · SC
Income Tax Appellate Tribunal, AGRA BENCH ‘DB’ AGRA
Before: SHRI SUNIL KUMAR SINGH & SHRI BRAJESH KUMAR SINGH
PER BRAJESH KUMAR SINGH, AM,
This appeal by the assessee is directed against the order of the Ld.
Commissioner of Income Tax (Appeals)-1, Agra, (hereinafter referred to ‘Ld.
CIT(A)’) dated 20.01.2015, arising out of assessment order passed u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred as ‘the Act’), dated
2011 for Assessment Year 2009-10. 2. Brief facts of the case: During the year the AO noted that the assessee
had credited a sum of Rs. 17,44,85,000 to its profit & loss account under the head 'GRANT RECEIVED FOR CANE PRICE PAYMENT. However, the AO
noted that in computation of its income for the y
The order continues below.
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