https://www.taxtmi.com/caselaws?id=345389 The tax character of a subsidy depends on its purpose and object: where sales tax exemption is granted after production begins, without a condition that the retained amount be used for capital expenditure, the receipt is revenue in nature and taxable. By contrast, depreciation may be claimed by a lessee in possession and use of an asset where the lessee has effective dominion over it for business purposes, even without strict legal title. The commentary applies these principles to distinguish capital assistance from business incentives and to recognise depreciation entitlement based on use and control rather than formal ownership alone. en-us Thu, 13 Jul 2017 00:00:00 +0530 Fri, 03 Nov 2023 16:25:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=345389 The tax character of a subsidy depends on its purpose and object: where sales tax exemption is granted after production begins, without a condition that the retained amount be used for capital expenditure, the receipt is revenue in nature and taxable. By contrast, depreciation may be claimed by a lessee in possession and use of an asset where the lessee has effective dominion over it for business purposes, even without strict legal title. The commentary applies these principles to distinguish capital assistance from business incentives and to recognise depreciation entitlement based on use and control rather than formal ownership alone. Case-Laws Income Tax Thu, 13 Jul 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=345389