Supreme Court reclassifies power subsidy as revenue, impacting taxation

The Supreme Court allowed the appeal, overturning the Tribunal's decision on power subsidy classification as a capital receipt. The Court ruled that power subsidies are revenue in nature and subject to taxation, emphasizing that the subsidy in question aimed at reducing electricity costs. This decision favored the Revenue authority.

---

---

The Supreme Court allowed the appeal and set aside the Tribunal's decision regarding power subsidy being a capital receipt. The Court held that power subsidies are of revenue nature and should be taxed accordingly. The subsidy in this case went towards reducing electricity bills. The decision favored the Revenue.

---