1. A Division Bench of this Court referred these cases for the consideration of the Full Bench. Thus these cases come up before us for decision.

I.T.R. Nos.217 & 218/1980.

2. The chief question that arises for consideration in these Income Tax References is as to whether replanting subsidy received from the Rubber Board under the replanting subsidy scheme of 1967 by the assessees during the relevant periods of assessment is revenue receipt, taxable under the Income Tax Act, 1961, hereinafter referred to as the 'Act'.

3. A Division Bench of this Court in Commissioner of Income Tax v. Malayalam Plantations (1987 (2) K.L.T. 169) found that the subsidy "was paid to swell the profits of the assessee". The question referred as to whether the subsidy received from the Rubber Board is income of the assessee, was thus answered in favour of the Revenue.

4. Learned counsel appearing for the assessees submitted before the Division Bench that the decision (1987 (2) KLT.169) required reconsideration and so, the Division Bench referred the matter for a decision by the Full Bench. We propose to decide first I.T.R. Nos. 217 and 218 of 1980, since we heard detailed arguments in these two cas