- (1.) IN the present appeal filed under s. 260A of the IT Act, 1961 (hereinafter referred to as "the "Act"), the Revenue on the facts and in the circumstances of the case, the Tribunal was legally justified in deleting the addition on account of addition of incentive realized on additional free sugar sale treating revenue receipt made by the AO and confirmed by the CIT(A), Bareilly -
(2.) THE appeal relates to the asst. yr. 1996 -97.
(3.) BEFORE the AO, the respondent -assessee, which is engaged in the business of manufacture and sale of sugar, claimed that the sum of Rs. 3,71,78,906 represents capital receipt as it was towards incentive received under the scheme formulated by the Central Government for recoupment of capital employed and repayment of loans taken from the financial institution for setting up a new sugar factory/expansion. The AO did not agree with the submission and, accordingly treated it to be revenue receipt. However, in the appeal preferred by the respondent -assessee before the CIT(A), Lucknow, the plea had been accepted. The Revenue filed an appeal before the Tribunal and the Tribunal had dismissed the appeal, following its earlier order passed in the case of the other assessee, which are also engaged in manufacture of sugar wherein a similar scheme was under consideration.;