https://www.taxtmi.com/caselaws?id=276138 The power subsidy received by the assessee was determined to be a capital receipt by the Tribunal. The subsidy, granted for setting up new industrial units in backward areas, was intended to attract entrepreneurs and was used for repayment of loans for capital outlay. While the Judicial Member viewed it as a revenue receipt aiding operational expenses, the Accountant Member and the Third Member applied the "purpose test" from relevant case law, concluding it was a capital receipt. Ultimately, the majority decision allowed the appeals, holding the subsidy as a capital receipt. en-us Thu, 19 May 2016 00:00:00 +0530 Wed, 31 Oct 2018 06:01:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=276138 The power subsidy received by the assessee was determined to be a capital receipt by the Tribunal. The subsidy, granted for setting up new industrial units in backward areas, was intended to attract entrepreneurs and was used for repayment of loans for capital outlay. While the Judicial Member viewed it as a revenue receipt aiding operational expenses, the Accountant Member and the Third Member applied the "purpose test" from relevant case law, concluding it was a capital receipt. Ultimately, the majority decision allowed the appeals, holding the subsidy as a capital receipt. Case-Laws Income Tax Thu, 19 May 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=276138