https://www.taxtmi.com/caselaws?id=117015 Sales tax reimbursement under a State incentive scheme for Scheduled Caste and Scheduled Tribe entrepreneurs was treated as a capital subsidy because the scheme's dominant object was to encourage setting up of industries and establish the business. The character of a subsidy depends on its purpose, not its source, and reimbursement quantified by reference to sales tax or linked to production does not become revenue income where the incentive forms part of a special package for industrial set-up. The receipt was therefore not taxable as revenue income. en-us Wed, 30 Apr 2003 00:00:00 +0530 Tue, 19 Jun 2012 15:40:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=117015 Sales tax reimbursement under a State incentive scheme for Scheduled Caste and Scheduled Tribe entrepreneurs was treated as a capital subsidy because the scheme's dominant object was to encourage setting up of industries and establish the business. The character of a subsidy depends on its purpose, not its source, and reimbursement quantified by reference to sales tax or linked to production does not become revenue income where the incentive forms part of a special package for industrial set-up. The receipt was therefore not taxable as revenue income. Case-Laws Income Tax Wed, 30 Apr 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=117015