https://www.taxtmi.com/caselaws?id=325191 SC held that subsidies reimbursing manufacturing or selling costs bear a direct nexus to the industrial undertaking and constitute profits and gains of business for purposes of Sections 80-IB and 80-IC. Applying the Sterling Foods test, the Court found government as the immediate source does not sever directness where subsidies reimburse business costs. Such receipts are not taxable under "income from other sources" but form part of business income (net profit) when computing deductions under 80-IB/80-IC. The High Courts' constructions were affirmed. en-us Wed, 09 Mar 2016 00:00:00 +0530 Mon, 06 Oct 2025 14:10:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=325191 SC held that subsidies reimbursing manufacturing or selling costs bear a direct nexus to the industrial undertaking and constitute profits and gains of business for purposes of Sections 80-IB and 80-IC. Applying the Sterling Foods test, the Court found government as the immediate source does not sever directness where subsidies reimburse business costs. Such receipts are not taxable under "income from other sources" but form part of business income (net profit) when computing deductions under 80-IB/80-IC. The High Courts' constructions were affirmed. Case-Laws Income Tax Wed, 09 Mar 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=325191