In The High Court Of Gujarat At ... vs Unknown

TAXAP/1160/2006 1/2 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD TAX APPEAL No. 1160 of 2006 ====================================== FAG BEARINGS INDIA LTD. ­ Appellant(s) Versus ADDL.COMMISSIONER OF INCOME­ TAX, (ASST) S.R.1, ­ Opponent(s) ====================================== Appearance :

MR MANISH J SHAH for Appellant(s) : 1, None for Opponent(s) : 1, ====================================== CORAM : HONOURABLE THE CHIEF JUSTICE Y.R.MEENA and HONOURABLE MR.JUSTICE A.S.DAVE Date : 08/05/2007 ORAL ORDER Heard learned counsel for the appellant.

The appeal is admitted in terms of the following questions:­ (1) Whether on the facts and in the circumstances of the case the subsidy received from GTZ, Germany for establishing training centres for employees and for training the employees of the assessee was non­taxable capital receipt or was taxable business income?

(2) Whether on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the assessee was not entitled to the deduction under Section 36(1)(iii) or Section 37(1) of the inter corporate deposit of Rs. 23,50,000/­ which it had written off as bad debt, which it had advanced in the course of business and the income of which was taxed as business income?

(3) Whether on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the assessee is not entitled to the deduction under Section 43B of the purchase tax which it became liable to pay because of the Supreme Court decision which came to its knowledge in the Asst. Year 1997­98 and which it in fact paid off before the due date of the filing of the TAXAP/1160/2006 2/2 ORDER return for Asst. Year 1997­98 in accordance with the proviso to Section 43B inserted in the said Section w.e.f 1.4.88?"

Issue notice to the other side. Paper book be filed within 3 months.

List the appeal for final hearing after 3 months.

(Y.R. Meena, C.J.) (Anant S. Dave, J.) */Mohandas