https://www.taxtmi.com/caselaws?id=178865 The Court held that subsidies received by the assessee for ongoing business operations are revenue receipts and therefore taxable. Following the principles established in Sahney Steel & Press Works Ltd. v. CIT, the Court determined that subsidies granted for assisting in carrying out business activities are revenue in nature. The timing and purpose of subsidy receipt are crucial in classifying it as a capital or revenue receipt. As the subsidy in question was received after commencing business operations, it was deemed a revenue receipt and subject to taxation. The Court upheld the Tribunal's decision, ruling in favor of the revenue authorities. en-us Fri, 27 Jan 2006 00:00:00 +0530 Mon, 15 Feb 2016 12:47:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=178865 The Court held that subsidies received by the assessee for ongoing business operations are revenue receipts and therefore taxable. Following the principles established in Sahney Steel & Press Works Ltd. v. CIT, the Court determined that subsidies granted for assisting in carrying out business activities are revenue in nature. The timing and purpose of subsidy receipt are crucial in classifying it as a capital or revenue receipt. As the subsidy in question was received after commencing business operations, it was deemed a revenue receipt and subject to taxation. The Court upheld the Tribunal's decision, ruling in favor of the revenue authorities. Case-Laws Income Tax Fri, 27 Jan 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=178865