TMI Blog2001 (11) TMI 24X X X X Extracts X X X X X X X X Extracts X X X X ..... function, was a capital or revenue receipt?" - we are of the opinion that the matter seems to be covered by a decision of the apex court in the case of Sahney Steel and Press Works Ltd. v. CIT. In the said decision, the apex court held that the subsidies not having been granted for production of or bringing into existence any new assets as such the same are of revenue character. As indicated here ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent company within the meaning of section 617 of the Indian Companies Act. It received grants-in-aid from the Government on various dates, i.e., Rs.4 lakhs on February 28, 1973, Rs.20 lakhs on December 10, 1973 and Rs. 7 lakhs on March 25, 1974. These grants-in-aid were utilised in the profit and loss account maintained by the said company in the said years which is as under: ------------------ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r seems to be covered by a decision of the apex court in the case of Sahney Steel and Press Works Ltd. v. CIT [1997] 228 ITR 253. In the said decision, the apex court held that the subsidies not having been granted for production of or bringing into existence any new assets as such the same are of revenue character. As indicated hereinabove, even in the instant case, the grants-in-aid have been ma ..... X X X X Extracts X X X X X X X X Extracts X X X X
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