1990 (12) TMI 71 - HC - Income Tax

Summary

The High Court of Madhya Pradesh rejected an application under section 256 of the Income-tax Act, 1961, regarding the taxability of sales tax subsidy received by the assessee from the Madhya Pradesh Government. The court cited a previous case where it was held that such subsidies were not taxable as revenue receipts but as incentives for capital investment. Therefore, the application was rejected.