https://www.taxtmi.com/caselaws?id=236866 The High Court held that the grant of Rs. 25 Lakhs received by the assessee from its holding company was a capital receipt, not a revenue receipt. The purpose of the grant was to protect the capital investment made by the holding company in the respondent, not to assist in trading operations. The court relied on the decision in Sahney Steel case to distinguish between capital and revenue receipts based on the purpose of the subsidy. The appeal was decided in favor of the respondent, and the grant was deemed non-taxable as income. en-us Thu, 05 Sep 2013 00:00:00 +0530 Fri, 31 Jan 2014 16:18:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=236866 The High Court held that the grant of Rs. 25 Lakhs received by the assessee from its holding company was a capital receipt, not a revenue receipt. The purpose of the grant was to protect the capital investment made by the holding company in the respondent, not to assist in trading operations. The court relied on the decision in Sahney Steel case to distinguish between capital and revenue receipts based on the purpose of the subsidy. The appeal was decided in favor of the respondent, and the grant was deemed non-taxable as income. Case-Laws Income Tax Thu, 05 Sep 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=236866