THE HON'BLE SMT JUSTICE T.MEENA KUMARI & THE HON'BLE SRI JUSTICE NOOTY RAMAMOHANA RAO REFERRED CASE NO : 143 of 1996 ORDER: (Per Hon’ble Smt. Justice T. Meena Kumari) In this case, under Section 256(1) of the Income Tax Act, 1961, the following questions are referred to this Court for opinion: (1) “Whether, on the facts and in the circumstances of the case, the ITAT was correct in law in directing the assessing officer to exclude the incentive received by the assessee from the Central Government for higher free sale release under Central Incentive scheme for new Sugar Units of Rs.20,14,493 and Excise Rebate earned by the assessee from the Central Government under Central Incentive scheme of Rs.6,37,840 for New Sugar Units ? (2) Whether, on the facts and in the circumstances of the case, the ITAT was correct in law in holding that the incentive received by the assessee from the Central Government for higher free sale release under central Incentive scheme for New Sugar Units of Rs.20,14,493 and Excise Rebate earned by the assessee from the Central Government under central Incentive Scheme of Rs.6,37,840 for new Sugar Units are capital receipts? (3) Whether on the facts and in the circumstances of the case, the ITAT ought to have held that the incentive received by the assessee from the central Government for higher free sale release under Central Incentive Scheme for new Sugar Units of Rs.20,14,493 and Excise Rebate earned by the assessee from the Central Government under Central Incentive Scheme of Rs.6,37,840 for New Sugar Units as revenue receipts as these amounts were required to be utilized for meeting the term loans, if any, which only amounts to enhancing the working capital of the assessee company?” When the matter was taken up, both the counsel submitted that the above referred questions are covered by a judgment of the Apex Court reported in “ Commissioner of Income Tax Vs. Ponni Sugars and Chemicals Limited”[1]. Recording the above submission, this reference is answered in terms of the above judgment. __________________________ Justice T. Meena Kumari _____________________________ Justice Nooty Ramamohana Rao Date: 17th March, 2010 nn. THE HON'BLE SMT JUSTICE T.MEENA KUMARI & THE HON'BLE SRI JUSTICE NOOTY RAMAMOHANA RAO REFERRED CASE NO : 143 of 1996 (Order delivered by the Hon’ble Smt. Justice T. Meena Kumari) 17/03/2010 [1] (2008) 306 ITR 392 (SC)