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JUDGMENT T.S. Sivagnanam, J. - This Tax Case (Appeal) by the assessee is directed against the common order passed by the Income Tax Appellate Tribunal (hereinafter called as the "Tribunal") in I.T.A.Nos.916/Mds/02, 1947 & 1948/Mds/02 for the assessment years 1998-99 and 1991-92 and I.T.A.No.968/Mds/2001 for the assessment years 1998-99. The present Tax Case (Appeal) is with respect to I.T.A.No.968/Mds/2001 for the assessment years 1998-99. 2. The assessee filed its return of income for the assessment year 1998-99 showing a total income of Rs.7,49,07,620/-. The return was accepted under Section 143(1)(a) of the Income Tax Act, 1961 (hereinafter called as the "Act"). Subsequently, notice under Section 143(2) was issued and the assessee filed their response and the assessment was completed by an order of assessment dated 31.01.2001. In this appeal, we are concerned only with two issues viz., regarding the power tariff concession given to the assessee is a revenue receipt and regarding scrap sales whether to be included in the total turnover for the purpose of deduction under Section 80HHC of the Act. 3. The Assessing Officer, while considering the issue relating to the power tariff concession, held that the assessee appended a note to the Memo of computation of income filed along with the return of income, wherein, the assessee stated that it received a sum of Rs.3,97,15,795/- and that industrial power tariff concession granted by the Tamil Nadu Government which was credited to the Profit & Loss account and offered to income-tax, although according to the assessee, it is a capital receipt; the assessee, by letter dated 29.01.2001 contended that this amount is a capital receipt and should be deducted from the Business income offered to tax; in making the claim, the assessee sought to distinguish the facts of its case from the facts in the case of Sahney Steel & Press Works Ltd., v. CIT [1997] 228 ITR 253/94 Taxman 368 (SC) by stating that in that case, the assessee had received subsidies on power consumption from the Andhra Pradesh Government and the Supreme Court held that such payments by Government were made to assist new industries to carry on their…

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