Whether the subsidy received by the assessee-company from the Andhra Pradesh Government is taxable as revenue receipt or not - Mere setting up of the industry did not qualify an industrialist for getting any subsidy. The subsidy was given as help not for the setting up of the industry which was already there but as assistance after the industry commenced production - appeals by the Revenue are allowed
Whether a reduction of share capital with the company paying a part of the capital by reducing the face value of its share, results in extinguishment of right in the shares held by the shareholder so that the amount paid on reduction of the share capital would be exigible to capital gains tax - Held, yes - HC was right in concluding that the appellant was liable to pay capital gains tax on the capital gain of Rs. 28,710 as a result of reduction in the preference share in Sarabhai Limited
