https://www.taxtmi.com/caselaws?id=17018 Subsidy paid by the Government to a statutory corporation to meet establishment and supervision deficits was held to be a capital receipt, not taxable revenue income. The payment was made to enable discharge of non-trading statutory functions under the governing Act, and was not linked to commercial sales, turnover, or profit augmentation. Because the grant merely offset unrecovered overheads incurred in performing public duties, it did not assume the character of a trading receipt. The Kerala HC therefore answered the reference in favour of the assessee and held the subsidy outside the ambit of taxable income. en-us Fri, 25 Jul 1997 00:00:00 +0530 Mon, 14 Sep 2009 16:09:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=17018 Subsidy paid by the Government to a statutory corporation to meet establishment and supervision deficits was held to be a capital receipt, not taxable revenue income. The payment was made to enable discharge of non-trading statutory functions under the governing Act, and was not linked to commercial sales, turnover, or profit augmentation. Because the grant merely offset unrecovered overheads incurred in performing public duties, it did not assume the character of a trading receipt. The Kerala HC therefore answered the reference in favour of the assessee and held the subsidy outside the ambit of taxable income. Case-Laws Income Tax Fri, 25 Jul 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=17018