HONOURABLE SRI JUSTICE B.PRAKASH RAO AND HONOURABLE SRI JUSTICE R.KANTHA RAO Reference Case No.280 of 1996 ORDER: (per the Hon’ble Sri Justice B.Prakash Rao) Heard both sides. The question involved being as to the fitment to be meted out to the incentive given to the assessee, learned counsel on either side submit that the question is no longer res integra. In Commissioner of Income Tax v. Ponni Sugars and Chemicals Ltd.,[1] the Supreme Court has held that such subsidy given by the Government is capital in nature, and thus, went in favour of the assessee. Following the same, the question referred is answered in favour of the assessee. Accordingly, the Reference Case is disposed of. _________________ B.PRAKASH RAO, J ________________ R.KANTHA RAO, J 02nd March, 2010 SKM [1] (2008) 306 ITR 392 (SC)