https://www.taxtmi.com/caselaws?id=273729 A subsidy linked to fixed capital investment under the Haryana sales tax incentive scheme was treated as a capital receipt because the scheme's object was to promote industrial investment and meet capital outlay, not to supplement trading income; depreciation was therefore allowable on the reduced cost of the fixed assets. Disallowance under section 14A read with rule 8D was held unsustainable where no exempt dividend income was earned in the relevant years, as the statutory condition for invoking that provision did not arise. The assessee succeeded on both issues, and the departmental challenge failed in consequence. en-us Wed, 13 Apr 2016 00:00:00 +0530 Wed, 11 Jul 2018 21:59:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=273729 A subsidy linked to fixed capital investment under the Haryana sales tax incentive scheme was treated as a capital receipt because the scheme's object was to promote industrial investment and meet capital outlay, not to supplement trading income; depreciation was therefore allowable on the reduced cost of the fixed assets. Disallowance under section 14A read with rule 8D was held unsustainable where no exempt dividend income was earned in the relevant years, as the statutory condition for invoking that provision did not arise. The assessee succeeded on both issues, and the departmental challenge failed in consequence. Case-Laws Income Tax Wed, 13 Apr 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=273729