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2013 (7) TMI 522 - HC - Income TaxWhether grant-in-aid received by the assessee is an incentive for conducting research so as to be treated as capital receipt and not as revenue receipt - Held that:- The grant-in-aid is given to the assessee for research in the field of telecommunications, which in-turn would benefit the Nation and public at large – the income is only a 'capital receipt' and not a 'revenue receipt' - Court relied upon the judgement of Commissioner of Income-Tax Vs. Ponni Sugars & Chemicals Ltd. (2008 (9) TMI 14 - SUPREME COURT) - the object of the grant-in-aid is for the specific purpose of conducting research in the field of telecommunications, so that the benefit thereof would ensure to the Nation - the grant-in-aid is not given to the assessee for carrying on its day-to-day business - if the assessee is able to acquire new ideas or new knowledge and use the same in its manufacturing activity it would be a case of acquisition of such new idea which in itself would constitute an intellectual property - It is to acquire such capital asset the grant-in-aid is given - It also helps in the growth of the assessee generally in public interest as the said grant-in-aid is given to the assessee so as to assist the assessee to acquire the new capital asset and the said benefit may be incidental to the business of the assessee – appeal decided against revenue
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