TMI Blog1998 (9) TMI 36X X X X Extracts X X X X X X X X Extracts X X X X ..... is as to whether the subsidy received by the assessee, which is an industrial concern under the Central Investment Outright Subsidy Scheme, is to be taken into account for computing the capital base as per the Second Schedule to the Companies (Profits) Surtax Act, 1964 (in short "the Act"). The assessment year is 1980-81. The Supreme Court in the case of Metal Box Co. of India Ltd. v. Their Wor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted by way of profits or even as contribution by the shareholders and also was not a loan which was required to be repaid. The available subsidy which when used in accordance with the terms of the subsidy would help to reduce the costs of the industry. The subsidy received, when used becomes the part of the assets of the assessee. It is no doubt possible that the subsidy may have to be repaid, i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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