- (1.) WE have heard Sri R.S. Agrawal for the appellant -assessee. Sri R.K. Upadhyay appears for the respondent -department. This Income Tax Appeal under Section 260 -A of the Income Tax Act, 1961 (the Act) is directed against the order dated 28.02.2003, passed by the Income Tax Appellate Tribunal, Lucknow Bench, Lucknow in Income Tax Appeal No. 455/Alld/1994, relating to the Assessment Year 1990 -91.
(2.) THE assessee -appellant has raised the following substantial questions of law, for consideration: - WHETHER on a true and correct interpretation of the provisions of Section 28 read with charging Section 4 of the Act, the Tribunal was legally correct in holding that the sum of Rs. 1,03,20,933/ - represented the profits and gains of the assessee, liable for taxation in the year under assessment? Whether having regard to the Janta Cloth Scheme as had been launched by the Central Government under its new textiles policy, the amount received by the assessee under the said scheme and/or any part thereof, could be legally treated/held to be taxable in its hand? WHETHER on the facts and circumstances of the case, particularly that the assessee did not have any vested right in unutilized amount of subsidy, the Tribunal was legally correct in holding that the sum represented its income and upholding the taxability of the same in the hands of the assessee?
(3.) THE assessee has not framed the questions properly The questions that calls for consideration of the Court is whether unutilized portion of subsidy received from the Central Government, as compensation for loss of profit, could be treated as capital receipt.;