https://www.taxtmi.com/caselaws?id=250850 Sales tax subsidy received under the Haryana industrial incentive scheme was treated as a capital receipt because the scheme's object was to promote new investment and industrial expansion, not to supplement trading income. The purpose test controlled the character of the subsidy: the decisive factor was the scheme's underlying aim under Rule 28C and the industrial policy framework, rather than the mode of payment or accounting treatment. Following an earlier coordinate bench ruling on an identical subsidy scheme, the Tribunal held that the receipt was capital in nature and therefore not taxable as revenue income. en-us Tue, 12 Aug 2014 00:00:00 +0530 Wed, 27 Aug 2014 09:04:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=250850 Sales tax subsidy received under the Haryana industrial incentive scheme was treated as a capital receipt because the scheme's object was to promote new investment and industrial expansion, not to supplement trading income. The purpose test controlled the character of the subsidy: the decisive factor was the scheme's underlying aim under Rule 28C and the industrial policy framework, rather than the mode of payment or accounting treatment. Following an earlier coordinate bench ruling on an identical subsidy scheme, the Tribunal held that the receipt was capital in nature and therefore not taxable as revenue income. Case-Laws Income Tax Tue, 12 Aug 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=250850