https://www.taxtmi.com/caselaws?id=12452 Government grants received by a 100 per cent Government company to support its functioning were treated as revenue receipts because they were not shown to be for acquiring or creating new assets. The assistance was credited to the profit and loss account and applied to operating support, so it bore the character of income rather than capital receipt under the governing subsidy test. On that basis, the grants were held taxable as income, since Government aid meant to carry on operations and not to bring a new capital asset into existence is revenue in nature. en-us Thu, 29 Nov 2001 00:00:00 +0530 Thu, 25 Feb 2010 15:40:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=12452 Government grants received by a 100 per cent Government company to support its functioning were treated as revenue receipts because they were not shown to be for acquiring or creating new assets. The assistance was credited to the profit and loss account and applied to operating support, so it bore the character of income rather than capital receipt under the governing subsidy test. On that basis, the grants were held taxable as income, since Government aid meant to carry on operations and not to bring a new capital asset into existence is revenue in nature. Case-Laws Income Tax Thu, 29 Nov 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=12452