Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (1) TMI 783 - AT - Income TaxNature of Subsidy under the “Quality Upgradation and Product Diversification Scheme” - whether the subsidy received by the Assessee was capital in nature not chargeable to tax or was revenue in nature, chargeable to tax? - Held that:- Quality Awareness programme for upgrading the quality of tea produced by the Bought leaf factories (processing the green leaf supplied by small growers) A detailed list of machinery items eligible for subsidy and their basic cost is annexed as annexure-1. A perusal of annexure-1 would show that the purpose of the scheme is to ensure better working of the tea manufacturing unit, plucking practices adopted in the tea garden etc. Subsidy is given for improving the infrastructure of the existing tea manufacturing unit. The predominant purpose of the scheme is to ensure that tea manufactures function more profitably and not for setting up of a new unit or expansion of the existing unit. We are therefore the view that the subsidy in question is revenue subsidy and was rightly brought to tax. - Decided against assessee
|