https://www.taxtmi.com/caselaws?id=238195 Subsidy character is determined by its purpose, not by the form or mechanism of payment. Where a Haryana sales tax incentive was tied to fixed capital investment and made available only to new industrial units or units undertaking expansion or diversification, its dominant object was to recoup capital outlay for setting up or enlarging the unit. The fact that the benefit was computed through a sales-tax deferment mechanism and became available after commencement of production did not change its essential nature. The incentive was therefore capital in receipt and not revenue in nature. en-us Mon, 28 Jan 2013 00:00:00 +0530 Fri, 18 Oct 2013 12:02:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=238195 Subsidy character is determined by its purpose, not by the form or mechanism of payment. Where a Haryana sales tax incentive was tied to fixed capital investment and made available only to new industrial units or units undertaking expansion or diversification, its dominant object was to recoup capital outlay for setting up or enlarging the unit. The fact that the benefit was computed through a sales-tax deferment mechanism and became available after commencement of production did not change its essential nature. The incentive was therefore capital in receipt and not revenue in nature. Case-Laws Income Tax Mon, 28 Jan 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=238195