Gross-profit additions on disputed purchases require reasoned appellate determination; disclosed claims alone do not support inaccurate-particulars pe...
Limitation after transfer-pricing remand: fresh TPO reference did not extend the assessment deadline, rendering the consequential assessment time-barr...
Interim judicial restraint on tax deduction prevents default, while supporting reasonable cause and penalty deletion for foreign-leg LFC reimbursement...
Palmolein classification defeated the crude-oil concession; material misdeclaration sustained recovery and confiscation, while separate false-document...
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 4907 
