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2013 (7) TMI 807 - HC - Income TaxClassification of subsidy - Whether the power subsidy received by the assesse is taxable as a revenue receipt in the computation of the income - Held that:- the amount of power subsidy/rebate is certainly a trading receipt not a capital receipt – subsidy is given on actual power consumption and is nothing to do with the investment subsidy given for establishment of industries or expanding industries in the backward areas - Court relied upon Sahney Steel and Press Works Ltd. v. CIT (1997 (9) TMI 3 - SUPREME Court) - incentives are production incentives in the sense that the company will be entitled to these incentives only after it goes into production - the scheme was not to make any payment directly or indirectly for setting up of the industries - subsidies were granted year after year only after setting up of the new industry and commencement of production – appeal decided in favour of revenue.
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