https://www.taxtmi.com/caselaws?id=240072 The High Court held that the incentive received by the Cooperative Society was a revenue receipt, not a capital receipt, as it was not used for expansion or setting up a new unit. The Court emphasized the purpose of the subsidy in determining its nature. The respondent treated the receipt as a revenue item in the profit and loss account, supporting this classification. The Income Tax Reference was allowed in favor of the revenue department, indicating that the subsidy should be taxed as a revenue receipt. en-us Mon, 01 Oct 2012 00:00:00 +0530 Mon, 25 Nov 2013 00:53:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=240072 The High Court held that the incentive received by the Cooperative Society was a revenue receipt, not a capital receipt, as it was not used for expansion or setting up a new unit. The Court emphasized the purpose of the subsidy in determining its nature. The respondent treated the receipt as a revenue item in the profit and loss account, supporting this classification. The Income Tax Reference was allowed in favor of the revenue department, indicating that the subsidy should be taxed as a revenue receipt. Case-Laws Income Tax Mon, 01 Oct 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=240072