https://www.taxtmi.com/caselaws?id=151886 The dominant issue was whether State subsidies received by the assessee-company were taxable revenue receipts or merely provisional reimbursements of trading losses incurred on Government-controlled subsidised sales. Although the AO and CIT(A) treated the amounts as taxable trading receipts following earlier years, the Tribunal admitted additional evidence under r.29 of the ITAT Rules, including communications from senior Government officials showing the subsidies were ad hoc, subject to adjustment on audited accounts, and intended only to recoup actual losses. Applying the principle that tax liability must rest on real income under the mercantile system, the Tribunal held the matter required fresh factual verification and remanded it to the AO for a speaking order; the appeals were allowed for statistical purposes. en-us Thu, 10 Jan 2002 00:00:00 +0530 Fri, 26 Dec 2025 11:36:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=151886 The dominant issue was whether State subsidies received by the assessee-company were taxable revenue receipts or merely provisional reimbursements of trading losses incurred on Government-controlled subsidised sales. Although the AO and CIT(A) treated the amounts as taxable trading receipts following earlier years, the Tribunal admitted additional evidence under r.29 of the ITAT Rules, including communications from senior Government officials showing the subsidies were ad hoc, subject to adjustment on audited accounts, and intended only to recoup actual losses. Applying the principle that tax liability must rest on real income under the mercantile system, the Tribunal held the matter required fresh factual verification and remanded it to the AO for a speaking order; the appeals were allowed for statistical purposes. Case-Laws Income Tax Thu, 10 Jan 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=151886