https://www.taxtmi.com/caselaws?id=12538 Madras HC treated a State Government subsidy for producing a feature film as a capital receipt because it was granted as an incentive linked to capital investment and the setting up of production, rather than as an accretion to trading profits after operations began. Applying the principle that subsidies tied to capital formation fall on the capital side, the subsidy was characterised as not taxable as income. The analysis turns on the purpose and character of the subsidy, not merely its receipt in the course of business. en-us Thu, 12 Jul 2001 00:00:00 +0530 Tue, 19 May 2009 18:46:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=12538 Madras HC treated a State Government subsidy for producing a feature film as a capital receipt because it was granted as an incentive linked to capital investment and the setting up of production, rather than as an accretion to trading profits after operations began. Applying the principle that subsidies tied to capital formation fall on the capital side, the subsidy was characterised as not taxable as income. The analysis turns on the purpose and character of the subsidy, not merely its receipt in the course of business. Case-Laws Income Tax Thu, 12 Jul 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=12538