P.D. Mulye, J.

The Income Tax Appellate Tribunal, Indore Bench, Indore, at the instance of the Commissioner of Income Tax, Bhopal, has made this reference u/s 256(1) of the Income Tax Act, 1961, for the opinion of this court on the following question of law :

" Whether, on the facts and in the circumstances of the case, the Tribunal was justified in deleting the additions of Rs. 24,481 and Rs. 66,990 made by the Income Tax Officer for the assessment years 1979-80 and 1980-81, respectively, being sales tax subsidy received by the assessee ? "

2. The facts giving rise to this reference, as per the statement of case received may be stated, in brief, thus : During the two years in question, the respondent-assessee received sales tax subsidies of Rs. 24,481 and Rs. 66,990, respectively. The Income Tax Officer was of the opinion that these receipts were revenue in nature and, as such, liable to be taxed as the income of the assessee. Consequently, he added these amounts in the assessee's hands. This was confirmed by the Appellate Assistant Commissioner on appeal. On a further appeal being filed by the assessee before the Tribunal, it deleted the additions with the following observ