Case Law Details
Punjab & Haryana High Court held In the case of M/s Maken Cement Industries vs. CIT that it is settled principle that the substantial question of law would only be based on the documents which were before the authorities below and also which were subject matter of consideration before the Tribunal. Once the stand was contrary before the Assessing Authority at the initial stage, the argument which is now sought to be raised cannot be addressed before the Court.
Facts of the Case
In this case assessee was following mercantile system of accounting. The question was raised by the assessee that the transport subsidy amounting to Rs.16,11,477/- which was never received by the assessee and for which merely a claim was lodged with the Jammu & Kashmir Government could be treated as income accrued and taxed in the hand of the assessee. On the other hand AO after refer the provisions of Section 80-IB held that subsidy received was an income incidental to industrial undertaking and had no direct nexus with it, and would not be eligible for deduction and the amount had been added as income. Accordingly, it was contended that it was never the case before the assessing authority as now contended that the amount had never been received.
Contention of the Assessee
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