Income Declaration Scheme declarations can evidence share-capital sources, while round-tripped funds and cash-linked credits require further verificat...
Permanent establishment tests: independent subsidiary premises and principal-to-principal dealings did not create Indian taxability for offshore suppl...
Valuation Officer estimates govern property-value additions once statutory valuation is invoked, requiring fresh consideration of objections and compa...
Waiver of written show-cause notice may prevent a later procedural challenge after participation in customs adjudication, preserving statutory appella...
Retrospective invalidity of ocean-freight IGST supports refunds despite non-party status and prior credit utilisation, subject to authorised appeal gr...
The purpose test for subsidy receipts requires examination of the scheme's operative provisions rather than its nomenclature, source, form or payment timing. Electricity subsidy under the Pondicherry power subsidy scheme was payable after production and calculated as a percentage of actual energy charges. Because it directly reduced the cost of power used in manufacturing and was not linked or earmarked to capital expenditure or creation of a capital asset, it constituted operational assistance. The subsidy was therefore treated as a taxable revenue receipt rather than a capital receipt, and the appeal was dismissed.
The purpose test for subsidy receipts requires examination of the scheme's operative provisions rather than its nomenclature, source, form or payment timing. Electricity subsidy under the Pondicherry power subsidy scheme was payable after production and calculated as a percentage of actual energy charges. Because it directly reduced the cost of power used in manufacturing and was not linked or earmarked to capital expenditure or creation of a capital asset, it constituted operational assistance. The subsidy was therefore treated as a taxable revenue receipt rather than a capital receipt, and the appeal was dismissed.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4900 
