Contact us   Feedback   Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

Budget - subsidy

Budget - By: - CA DEV KUMAR KOTHARI - Dated:- 8-2-2016 Last Replied Date:- 23-2-2016 - Budget 2016 - Government subsidies must be specifically excluded from income. General discussion: Basically subsidies are given to provide a support a socio -economic cause and public welfare. Subsidies which provide long-term benefits improves infrastructure. For example, education subsidies to educational institutions and students improve education, knowledge and as a result improved human resources in socie .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ople and business. For example, recent extension of help and subsidy to sugar industry, by way of concessional loan, subsidy to pay sugar cane price, in times of distress has result of saving sugar industry from collapse. If during distress subsidy is not provided, many in industry would be forced to close sugar factories leading to unemployment, and loss to farmers. Without subsidy, many educational institutions will not be able to run, many students will have to discontinue educational courses .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

must be specifically considered as capital receipt and not to be included in income directly ( e.g by S. 2 (24) (xviii) ( a new provision to unsettle settled legal position by NAMO government through Shri Arun Jaitely FM) , S. 28, S. 41 and S.50 etc. If taxed the purpose of subsidy will be lost: As noted earlier subsidies are given for specific purposes, if a tax is imposed on subsidy, the purpose of granting subsidy will stand diluted to that extent. Suppose a subsidy is given for say Rs. One l .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

so help in overall socio-economic development. For example, gifts receive at the time of marriage help in creation of capital base of newly- wed couple. Even gifts received at the time of birth of child, helps in creating a capital base fo child. Litigation: Our government through its various departments and agencies is biggest litigator. Unfortunately even at level of Ministers (acting for legislators) there is tendency of incorporating provisions which are prone to litigation. There is also co .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

N PERMITS TO IMPSE TAX ON INCOME AND NOT ON CAPITAL RECEIPTS. Few important observations from judgments: In CIT vs. Reliance Industries Ltd. 2009 (4) TMI 516 - Bombay High Court wherein the Hon ble Bombay High Court, while relying upon the decision of the Hon ble Supreme Court in the case of CIT vs. Ponni Sugars and Chemicals Ltd. 2008 (9) TMI 14 - SUPREME COURT, has held that if the object of the subsidy was to set up a new unit in a backward area to generate employment therein, then the subsid .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

not relatable to acquisition of assets. M/s. Uni Deritend Limited Versus The Additional Commissioner of Income Tax, Range - 1 (3) , Mumbai 2016 (2) TMI 117 - ITAT MUMBAI In this case, Tribunal held that the subsidy received on installation and working of wind mills , subject to several conditions was a capital receipt and it was not to meet cost of windmill but for specific purposes. The Tribunal held that such subsidy will not be deducted from cost of asset for the purpose of allowing deprecati .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version