Attachment and proclamation of sale of immovable property: limitation treated from financial year end; proclamation held within period, petition dismi...
Second Schedule attachment and validity of a post-notice mortgage: TRO cannot declare mortgage void ab initio; sale and appropriation allowed thereaft...
Limitation for final assessment under sections 144C and 153 treated jointly, resulting in quashing of timebarred assessment order and liberty to reviv...
Deductibility of settlement payments for securities law penalties and treatment of unexplained cash credits in share trading -- Tribunal upholds posit...
Threshold for allottee-initiated insolvency petitions in leasehold real estate upheld; petition admitted after possession letters deemed legally ineff...
Contravention of foreign exchange rules in crossborder diamond payments; appellate tribunal reduces one appellant's penalty for delay and proportional...
Grant-in-aid/subsidy received from the Government under a rehabilitation scheme was examined to determine whether it constituted a revenue receipt or a capital receipt. Applying the "purpose test", the financial assistance was held to be intended predominantly to rehabilitate the loss-making assessee by pulling it out of financial stringency, with the funds earmarked primarily for clearing loan liabilities. Performance-linked conditions were treated as monitoring mechanisms to ensure proper utilisation of rehabilitation assistance, not as indicators of a revenue character. Even assuming some performance objective, the dominant purpose of rehabilitation prevailed. Accordingly, the receipt was held to be a capital receipt not chargeable as revenue income, and the issue was decided against the revenue. - HC
Grant-in-aid/subsidy received from the Government under a rehabilitation scheme was examined to determine whether it constituted a revenue receipt or a capital receipt. Applying the "purpose test", the financial assistance was held to be intended predominantly to rehabilitate the loss-making assessee by pulling it out of financial stringency, with the funds earmarked primarily for clearing loan liabilities. Performance-linked conditions were treated as monitoring mechanisms to ensure proper utilisation of rehabilitation assistance, not as indicators of a revenue character. Even assuming some performance objective, the dominant purpose of rehabilitation prevailed. Accordingly, the receipt was held to be a capital receipt not chargeable as revenue income, and the issue was decided against the revenue. - HC
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4823 
Join Channel 
