https://www.taxtmi.com/caselaws?id=20006 HC held that transport subsidy received by the assessee engaged in manufacture and sale of plywood and blackboards, under a State scheme for units in backward areas, constituted a revenue receipt taxable as business income. The Court found that the subsidy directly recouped transport expenditure, an incidental cost of the assessee's business, and was intended to support profitable operations rather than to subsidise capital outlay. On examining the scheme's terms, including its availability to existing and expanded units and its recurrent, expenditure-linked nature, HC upheld the Tribunal's conclusion that the subsidy was inseparably connected with the assessee's trading operations. Both questions were answered against the assessee. en-us Fri, 20 Aug 1993 00:00:00 +0530 Sat, 13 Dec 2025 11:30:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=20006 HC held that transport subsidy received by the assessee engaged in manufacture and sale of plywood and blackboards, under a State scheme for units in backward areas, constituted a revenue receipt taxable as business income. The Court found that the subsidy directly recouped transport expenditure, an incidental cost of the assessee's business, and was intended to support profitable operations rather than to subsidise capital outlay. On examining the scheme's terms, including its availability to existing and expanded units and its recurrent, expenditure-linked nature, HC upheld the Tribunal's conclusion that the subsidy was inseparably connected with the assessee's trading operations. Both questions were answered against the assessee. Case-Laws Income Tax Fri, 20 Aug 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=20006