JUDGMENT:

(Per the Hon’ble the Chief Justice Alok Aradhe)

Mr. J.V.Prasad, learned Senior Standing Counsel for Income Tax Department for the appellant.

Mr. Rohan Aloor, learned counsel representing Mr. Ch.Pushyam Kiran, learned counsel for the respondent.

2. This appeal under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) has been preferred by the Revenue. The subject matter of the appeal pertains to assessment year 2000-01. The appeal was admitted on following substantial question of law:

“Whether the finding of the Income Tax Appellate Tribunal that the amount of Rs.6 crores received by the Assessee under an Agreement with PFIZER Company is a capital receipt not liable to tax as the same ::2::

is not a revenue receipt exigible to tax, is not erroneous in law for non-considering the relevant facts decided by the Assessing Officer and confirmed by the Appellate Authorities?”

3. The factual background in which the aforesaid substantial question of law arises for our consideration need mention.

4. The assessee is engaged in the business of manufacture and sale of Hepatitis-B Vaccine under the trade name “Shanvac-B”. The assessee is equipped with in-house Rese